IRS may revoke passport of those who owe $50k in taxes - new law
A new law passed by US Congress and signed by President Obama this month allows the IRS to strip anyone who owes the US government as least $50,000 in unpaid taxes of an American passport.
The law, passed via approval of transportation legislation known as the Fixing America’s Surface Transportation Act, will give the Internal Revenue Service and the US Department of the Treasury permission to authorize the US State Department to pursue or deny delinquent taxpayers' passport privileges. Those owing more than $50,000 to the IRS would receive written notice of the revocation, but only after the IRS has filed a lien.
Pursuant to the law, the State Department will not issue a passport to anyone who owes more than $50,000, with some exceptions. Those outside of the US when their passport is revoked will, however, be allowed to return home.
I predicted this would happen sooner or later. And that when it happened, the law would be sneaked in by attaching it to something that sounds benign. And sure enough, it was buried inside the Fixing America’s Surface Transportation Act.
I assume the $50,000 applies to FATCA penalties as well, not just to those who owe actual taxes. But I don't have proof of that right now, because I haven't got the patience to read the Fixing America’s Surface Transportation Act.
If you reside in Taiwan with an ARC or APRC, if you lose your US passport and don't have another nationality to fall back on, you'd lose your right to residence here as well. Or indeed, even your right to visit. But you could always return to the Land of the Free, so it doesn't matter, right?