Hello
Can you tell me what the IRS Tax ruling is for a retired U S Citizen
living abroad on social security for an extended period of time. Does
he pay tax to the IRS or to the foreign country he is living in.

regino-ga,

According to IRS Publication 915:  

Social Security and Equivalent Railroad Retirement Benefits

Social Security benefits are exempt from US taxes for recipients
living in listed countries:


==========

http://www.irs.gov/pub/irs-pdf/p915.pdf
Publication 915
Social Security and Equivalent Railroad Retirement Benefits



...U.S. citizens residing abroad. U.S. citizens who reside in the
following countries are exempt from U.S. tax on their benefits.

Canada.

Egypt.

Germany.

Ireland.

Israel.

Italy. (You must also be a citizen of Italy for the exemption to apply.)

Romania.

United Kingdom.

The SSA will not withhold U.S. tax from your benefits if you are a U.S. citizen.

==========


In addition, the above publication also contains the criteria you can
use to determine if SS benefits are taxable at all, even for those
living in the US (it depends on total income).

I trust this information fully answers your question, but if there's
anything else I can do for you, just let me know by posting a Request
for Clarification, and I'm at your service.

Cheers,

pafalafa-ga


search strategy -- used bookmark site for the IRS

Thank you very much for your prompt answer.

It depends on the tax treaties in effect between the U.S. and the
country in questioin.