I have a software business that has customers outside of the US. Are there special tax treatments for the income received from those customers?

ANSWER

The BIDaWIZ Team's Answer:

Do you just have customers in foreign locations or do you have a physical presence and expenses there as well? Businesses are generally taxed on their worldwide income no matter their location. Thus, the income received from foreign customers should also be reported. However, if your business is also paying taxes in foreign locations because of your tax nexus (i.e. physical presence), then you are likely eligible for a foreign tax credit. This ensures that you aren't taxed by both the US and the foreign country.