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Have An Unpaid Tax Bill? Your Passport WILL Soon be Revoked!



Ronald Marini picture41

On Tuesday, December 1, 2015 we posted Have An Unpaid Tax Bill? Your Passport Could Soon be Revoked!, where we discussed that nothing has happened since our May 31, 2012 post “Tax Delinquents May Have Passports Canceled & Be Questioned at Air & Sea Ports”  as it relates to the IRS being able to revoke the passports of Americans who owe substantial unpaid taxes.

However a recent bill known as the  H.R. 22, Fixing America’s Surface Transportation Act (FAST Act)which It includes amendments to the tax code that would allow authorities to revoke or deny the passport of any US taxpayer who has unpaid taxes in excess of $50,000 or who have not obtained or won’t provide a Social Security number, has been approve by the conference committee.

The House and the Senate passed the final version of this highway funding legislation on December 3, 2015 and the bill moves to the president where most believe he is likely to sign it into law.

Have A Tax Problem?  Want To Keep Your US Passport?

Original Post By:  Ronald Marini

 

Mr. Marini concentrates his practice in Representation before the IRS and All Other Tax Authorities, IRS Collections, Offers in Compromise, Installment Payment Plans, Appeals, Sales Tax Audits, International and Tax Law, Asset Protection and Estate Planning.

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2 comments

  1. JC Double Taxed says:

    As part of this highway funding bill is potential revocation of passports for tax debts of $50,000+.

    For the 8.7 million US persons living overseas, subject to FBAR and potentially FATCA 8938 penalties for account reporting they may very easily breach the $50,000 threshold even by relatively minor reporting error and even if they owe no US tax. For these people a passport is very much more vital than for US residents.

    Democrats Abroad has come out against this Passport Revocation as there are ” no safeguards, no warning, no due process.” And for US persons overseas, the IRS lacks capacity to get an overseas address right so a notice gets delivered. It all sounds like the Soviet Union or North Korea.

    The situation of US persons tax resident abroad:

    Double Taxation (county of residence + US tax via tax treaty gaps)

    Without Representation (would never have agreed to it all)

    Without US Government Services (that US resident US persons may enjoy)

    Without a Care By The US Government For One’s Well Being (only about stick and compliance)

    With Unfathomable Compliance (obligation to overlay the 74,000+ tax code on top of the tax code of one’s country of residence)

    With Excessive Compliance Cost (see above – it all requires highly specialized assistance and can’t be done with TurboTax, and you don’t use that because of the potentially bankrupting penalties (that US residents do not face if not done right).

    With Excessive Compliance Penalties. (The U.S. tax rules punish accounts and investments that are foreign to the USA)

    Is TYRANNY!

    It may be said that such US tax and compliance required of US persons overseas is unAmerican. The US has forgotten its founding principles in its tax and compliance obligations of US persons living overseas.

    Any US persons living overseas caught up in this must visit the message boards of The Isaac Brock Society, with motto “Liberty and justice for all United States persons abroad, ” no doubt the motto was adopted as the US government rules are not about Liberty and justice for all United States persons abroad.

  2. Elaine Terlinden says:

    Since this has become law, can you please tell me where/what it says re passports can also be denied or revokes for failure to obtain or provide a Social Security number?

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