False. Most countries nowadays have double taxation treatises. The United States – Germany Tax Treaty covers double taxation with regards to income tax, corporation tax, and capital gains tax. To claim US tax credits against German taxes paid, expats must file form 1116 when they file form 1040. Interest will be only be taxed in the country where the person receiving them is a resident, regardless of where the income is sourced. It is also worth mentioning that the United States – Germany Tax Treaty was amended in 2006 to allow the two countries to share tax information with each other automatically, meaning the IRS can see what German taxes American expats living in Germany are paying.