- 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
From Hungary To Cyprus: The European Countries Where You Can Still Get A Golden Visa
While some countries like Spain have clamped down on golden visas, others like Hungary and Cyprus still offer them for l... Read more
How Seville Is Standing Up To Madrid And Barcelona As A Host City For Major Events
The Andalusian capital is no longer a transit destination. From the Latin Grammy Awards to the Ibai Evening, plus the la... Read more
Four Seasons Launches Its First Yacht Complete With On-board Spa Plus 11 Restaurants And Bars
Named Four Seasons I, the vessel will have just 95 suites on board and will sail around the Mediterranean in the summer ... Read more
Collision On The Runway At New York LaGuardia Airport: Two Pilots Killed And Flights Grounded
An Air Canada regional jet struck a rescue and firefighting vehicle that was responding to a separate incident. Read more
Cycling In Sweden: New 170km Route From Gothenburg Will Open In May
The Ljungleden trail from Gothenburg to Falköping is designed for both experienced cyclists and more casual riders. Read more
These Are The UKs Most Popular Tourist Attractions, From The Natural History Museum To Stonehenge
How many of these museums, galleries and monuments have you been to? Read more