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

Is It Safe To Travel To Thailand And Cambodia As Border Clashes Escalate?

In July, a five-day flare-up displaced more than 200,000 people, left 40 dead and affected flights and land routes. Read more

Japan Earthquake: Is It Safe To Travel Despite The Megaquake Warning?

The ‘megaquake’ warning is the first since the category was introduced in 2022. Read more

Tuscan Wines And Alpine Climbs: Europes Luxury Trains Offer New Ways To Celebrate The New Year

La Dolce Vita's three-day experience comes with a price tag to match its exclusivity, starting at €11,280 per passenge... Read more

Lisbon Airport Queues Spark Security Warnings As Police Unions Cite Pressure To Speed Up Checks

Portuguese police unions have warned that government pressure to reduce airport queues is forcing the use of simplified ... Read more

Thailand Ends Its Afternoon Alcohol Ban: Heres What Travellers Need To Know

The afternoon alcohol sales ban dated to 1972, when it was passed to prevent civil servants from drinking during the wor... Read more

Eurostar On Track To Link Germany And UK. But, When Will Direct Trains Launch?

Direct train services linking Germany and the UK were unveiled earlier this year, but what progress has been made since? Read more