- Home » Expat News » US expats now facing passport revocation for tax debt
US Expats Now Facing Passport Revocation For Tax Debt
| Published: | 3 Oct at 6 PM |
Want to get involved?
Become a
Featured Expatand take our interview.
Become a
Local Expertand contribute articles.
Get in
touchtoday!
US expats who’ve had their passports revoked due to FATCA are now facing action as regards work permits and visas.
Passport revocation can have serious implications for expats with business visas and work permits, with the impact of action by the US taxman far more serious than that for US taxpayers in the home country. According to chair of American Citizens Abroad Jonathan Latowitz, problems caused by passport revocation are potentially far worse for US expats overseas than they are for domestic American citizens as it can trigger losses of jobs as well as the freedom to travel outside the USA.
According to a recently released notification from the IRS, letters are now being sent to indebted taxpayers living overseas warning the taxman is about to send their details to the US State Department along with a request to revoke their passports should they not come to an agreement as regards clearing their tax debts. Those receiving the letter will have 90 days to set up a payment plan, although domestic taxpayers are only allowed 30 days. Those US expat affected will have run up a tax debt of $52,000 or more, with action by the IRS commencing just under two years ago.
Excluding those on military service, it’s estimated some eight million American citizens are living, working or retiring overseas, with many believed to be unaware they’re at risk of having their passports cancelled. One problem, according to the IRS, is the length of time it takes to contact those in far flung locations due to slow postal services, but there’s also a problem with elderly expats who’ve moved addresses and forgot to inform the tax authority back in the home country. Again according to the IRS, it’s not hard to end up owing over $52,000 in back taxes, as rules for expats are complicated and errors are easily made, both by the taxpayer and the tax collector.
Comments » No published comments just yet for this article...
Feel free to have your say on this item. Go on... be the first!
RECENT NEWS
Waldorf Astoria Rabat Salé Opens In Moroccos Tallest Building
The new property is found within the 55-storey Mohammed VI Tower, which is also the third tallest skyscraper in Africa. Read more
Florences Iconic Villa San Michele Hotel Reopens With Revamped Spa, Rooms And Gardens
After an 18-month renovation, Belmond’s Villa San Michele has reopened in the hills above Florence with refreshed room... Read more
Travelling To Bosnia And Herzegovina? Heres What Visitors Need To Know
Bosnia and Herzegovina’s centuries-old heritage and a growing, creative hospitality scene are helping to establish the... Read more
Raves, Cruises And Historic Train Rides: Where To Watch The 2026 Eclipse This August
On 12 August, those in the path of totality will be plunged into darkness for up to two minutes. Read more
Broadening Access To Contemporary Art: The Best Art-inspired Stays In Europe
With design-led rooms, on-site exhibitions and distinctive interiors, arty hotels offer unending guest experiences. Read more
Airlines Cut 13,000 Flights And Two Million Seats In May Due To Jet Fuel Crisis
Airlines across the world have cut thousands of May flights and scaled back capacity as the jet fuel shortage begins to ... Read more