U.S. Citizens, Do You Owe U.S. Taxes? Read This!

[OnMyWay]

More good information from Jack Walker at Subic RAO!

Passport loss and more: Risks of ignoring U.S. taxes for citizens living abroad 

Imagine you’ve been living outside the U.S. for a few years, enjoying the culture and lifestyle of your home away from home. You plan a trip back to the States to see family and friends. What you didn’t plan for was finding out your passport was revoked by the IRS.

Alarming, right? But this scenario is a real possibility. The IRS recently said it’s following through on plans to revoke passports or deny renewals for those with tax debt of $52,000 or more. As a first step, the IRS sends at-risk taxpayers a letter. But as many expats know, international mail can be slow – or not arrive at all.

Then, while your letter is in the mail, your case is also sent to the Department of State. This is what could potentially prevent your return trip. Instead of traveling home, you’re stuck in the States until your situation is resolved, which could take months or years. Meanwhile, you may have a job, family and other responsibilities counting on you abroad.

If you’re thinking there’s no way you could owe that much, consider this. Many citizens living abroad don’t know they have to file U.S. taxes, meaning their unpaid taxes start stacking up. Pile on yearly penalties of $10,000 or more for failing to file returns or other required forms and $52,000 is not so much of a stretch.

Here’s what it means to you: If you owe the IRS $52,000 or more and you don’t have a payment plan or other agreement set up, your passport could be at risk.

[Joey G]

I have no problem with this policy. I pay, not that hard to do.  I think many of the "don't know" are really many who thought they could get away with it.

[Arizona Kid]

9 hours ago, Joey G said:

I have no problem with this policy. I pay, not that hard to do.  I think many of the "don't know" are really many who thought they could get away with it.

In my opinion..overpay US taxes. Had a bad experience in the 80's When California drained my bank account with no warning to get what I owed them. They don't care. At least the US govt will let you pay in installments.  

[Marvin Boggs]

Can empathize.  The year before they instituted this policy, I was in the throes of divorce, discovering how the ex had shifted business back-taxes onto our bank credit line.  By the time the dust settled, I was stuck with ALL of it, plus having to pay off the creditors, resulting in a $45K tax bill that kept growing as penalties were being accrued.  Thank God I got a good accountant, and she got me on a tax payment plan asap.  I can see how someone could end up on the north side of $52K.