US Expats Now Facing Passport Revocation For Tax Debt

Published:  3 Oct at 6 PM
Want to get involved?

Become a

Featured Expat

and take our interview.

Become a

Local Expert

and contribute articles.

Get in

touch

today!

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!

Tell us Your Thoughts On This Piece:

RECENT NEWS

Upper Age Limits For Clubs Are Common In South Korea. Now Japan Is Following Suit

The chain claims it merely wants its patrons’ preferences to match its boisterous atmosphere, but the move has sparked... Read more

From Berlin To Tenerife: All The Destinations Ryanair Wont Fly To Anymore In 2026

Ryanair has added another French airport to its list of route cuts for 2026, citing aviation taxes. Read more

Want To Book A Bargain Holiday? Try Skyscanners New Cheapest Destination Planner

Travellers can select the month of travel and the new tool will show the best-value destinations by average flight price... Read more

Residents Have Reached Breaking Point: Italian Valley Restricts Access To Famed Photo Spot

It comes after residents expressed frustration over traffic and tourists clogging up the town’s parking places and tre... Read more

Fitur 2026: Innovation, Sustainability And A Tribute To The Adamuz Accident Victims

Fitur 2026 brought together more than 10,000 travel companies from 161 countries in Madrid. Read more

Whirling Dervishes, Sand-covered Elephants And Sukhothai At Dawn: 2025s Best Travel Photos Revealed

After more than 20,000 entries, a panel of international experts has selected the best images in the world of travel pho... Read more