While the Foreign Income Tax Exclusion does exempt you from Income Tax, it does not exclude you from the Self Employment Tax portion of your tax calculation, if you are self employed, such as I am. There are documents that exist on the internet, sponsored by the IRS that you should avail yourself of if you are a resident of a foreign country. TurboTax does an excellent job, but you'd need the business version if you in fact have a business in a foreign country. In Belize, there are a few accountants that specialize in Ex-pat tax law, situations, etc.
If you own a business or are a sole proprietor in a foreign country, you are generally in effect "self employed". (Unless you are a corporation, LLC, etc, but then, the tax laws are different, but still need to be understood.) I would guess there are many people not in compliance with tax code, at their own peril I would say, because they have incomplete info or just haven't done the research necessary to understand the tax code as it relates to their situation. Or worse, they think the US Government can't know or won't find out. I would strongly urge anyone considering relocation to a foreign country or living in one to understand their tax situation. There are a number of IRS rules to establish foreign residency first off, and regardless of your income, you still have to file and disclose it. With FACTA coming on line, and by all accounts the US Government looking more and more at US Nationals living abroad, I strongly urge anyone considering moving abroad or living there to have a full understanding of their tax situation. Good news is, full time foreign residency does in most cases qualify you for an exemption from the US Affordable Healthcare Act.
(TurboTax headquarters in San Diego, CA, pictured.)