The IRS is going after all expats, pilot or not. U.S. tax and banking laws are killing the ability of Americans to even function outside of the United States. My wife and I just got caught up in the mess too. We were in the process of buying a house when our bank decided they would not work with us simply because I am American and it would require too much paperwork and leave them vulnerable to draconian fines and penalties if they made a mistake. In the view of the U.S. government, any American who dares leave the country for any reason is an unpatriotic tax cheat and must be viewed with suspicion. If my wife and I ever want to buy a house, we either have to move her and the kids out of their home country, or I have to renounce my U.S. citizenship. Neither are pleasant options.

Anyway if you do decide to work overseas be ready for a mountain of tax paperwork. And do not count on being able to do much, if any, banking overseas as many foreign banks are severely limiting services to U.S. citizens. Several U.S. banks have even closed U.S. citizens bank accounts if they see large transactions, or too many transactions, occurring overseas. So be careful even if you keep your money in the states and just draw money out at the ATM to cover your overseas expenses. This stuff you read about, banking problems and IRS audits, are really happening.

PS- Earlier this year China signed an agreement to comply with the FATCA and FBAR laws, so no hiding your money in China if you were thinking about doing so.