- 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
Cross Us Off The List: Why Locals In This Tiny European Village Want Its UNESCO Status Removed
Some residents believe they would be better off if the village was removed from the prestigious list. Read more
'Our Main Export Is Joy': Why Europeans Are Flocking To Brazil In Record Numbers
Brazil closed 2025 as the world's fastest-growing international destination, driven by new air routes and a growing push... Read more
Spain Plans To Focus On Quality Over Quantity As Tourist Numbers Hit Record High
Spain has struggled to balance tourism with local life, as residents complain of housing shortages and rising costs. Read more
EU's New Entry/Exit System Has Had A Shaky Start. Heres What Travellers Need To Know
Travellers can expect information campaigns and awareness-raising activities at border crossing points. Read more
Rome Tourists Have To Pay To Get Up Close To The Trevi Fountain From Today
Authorities say the goal is to stop tourists from "eating ice cream or pizza on a monument that deserves the proper resp... Read more
'Stigmatised Territory': Why Tourists Have Abandoned Rio's 'posh' Attractions For These Favelas
The "often-stigmatised territories" of Rio de Janeiro are experiencing a tourist boom, and it's pumping cash into low-in... Read more