US Passport woes... no passport for you!

[PNGMK]

At least not if you supposedly or allegedly or mistakenly owe the IRS > $50,000.


http://www.aljazeera.com/indepth/featur ... 49534.html


You can imagine the FUBAR's this will cause.

[GSM8]

Nothing wrong with revoking the passport's of tax dodgers. Its the practice of CBT (citizenship based taxation) that's FUBAR.

[PNGMK]

Actually I don't agree. An identity document is basic human right these days.

FYI I've put my plans to migrate to the USA on hold because of the CBT situation.

[GSM8]

Agreed, but a state driver license is also an identity document. Passports are often revoked when there is fear of flight, its not unique to US. CBT as its practiced is not an issue if you live in the US - only when a "US person" lives abroad as an expat. In fact most countries of the world (including Australia and EU) tax on worldwide income when you live there. The problem comes when you start taxing an American living in Singapore or anywhere else (subjected to local tax regime and benefit levels) by US standards.

[x9200]

The other countries typically don't care about the income if an avoidance of double taxation agreement is in place and their citizens stayed in the other country for a certain period of time (typically > half a year). As far as I understand, in US not only you are taxed if your worldwide income exceeds some level, but you have to file the tax assessment papers every year regardless you actually lived in US or stayed out for many years. This seems pretty US unique.

[sundaymorningstaple]

Tell me about it. 33 years and counting. And, the only income that is excludable in that figure is "Earned Income". So if you have a business here, a rental property here, investments here, they are all subject to taxes at what ever the tax rate would be in the US if your Earned Income were not excluded.

[zzm9980]

Nothing wrong with revoking the passport's of tax dodgers. Its the practice of CBT (citizenship based taxation) that's FUBAR.

The problem is the amount of $50k is not that unreasonable highly. If you're looking to get the real scofflaws, the amount should be 5x or 10x that. Remember the IRS does nothing electronically, and all notices from them will come only via regular mail. Especially onerous when one lives overseas.

A single person making $150-200k USD in a year could be well within that estimated tax liability before deductions and exemptions are factored in. If your filing gets lost in the mail do you trust the IRS to calculate all of those for you? I don't.

That said, I err more on the side of PNGMK. I wonder if a tax dodger could makea case to apply for asylum based on being denied identity documents / basic human rights?

[BBCWatcher]

An identity document is basic human right these days.

Whether it is or isn't, fortunately the United States Department of State will still continue issuing Emergency Travel Documents (ETDs) to U.S. citizens who are either seriously delinquent in their child support or seriously delinquent in their taxes. ETDs are valid for one-way international travel to the United States, including airline connections.