Expat Community > Uruguay

kimbo47
Joined 2010
Posts: 833

US CITIZENS PASSPORT DANGER

8 years ago

Here are a few paragraphs from a newsletter that I receive that has useful information for US citizens abroad.
There are 2 key items to focus on:
1.-As you all know US citizens are taxed even if they live abroad
.
2.- Foreign addresses a are not always easy to send key information so it would make sense to keep informed of your status. You certainly want to a void having your passport cancelled even if temporarily for a debt you have been charged with and you have not been informed.

Remember in today's computer world many mistakes are made and sometimes you are charged with a debt that is a mistake and which you have to prove otherwise.

>While there are few things that both parties in Congress agree on, collecting taxes by whatever means necessary is one of them. And the GAO proposal to strip passports from US citizens who owe federal taxes proved popular on both sides of the aisle. Legislation to this effect was introduced in 2012, 2013, and 2014, but ultimately failed. However, the proposal now appears ready to become law.

Both the House and the Senate have enacted versions of a highway funding bill (H.R. 22) containing this provision that is now before a conference committee. It’s likely to hit President Obama’s desk later this month.

The bill sets up a mechanism to deny or revoke your passport if you have a "seriously delinquent tax debt." This is defined as a tax debt that exceeds $50,000 for which the IRS has filed a notice of lien or levy.

If you’re a US citizen who lives overseas, this proposal is a potential catastrophe. Without a valid passport, a residence permit in another country in most cases will be revoked. And if you’ve ever lived outside your country of citizenship, you’ll find you need to present your passport in all sorts of situations, anything from renting an apartment to opening a bank account.

The US is virtually alone in taxing its non-resident citizens as if they never left. Yet, the procedures the IRS uses to correspond with overseas citizens are woefully inadequate. According to a recent report from the Treasury Inspector General for Tax Administration, “IRS data systems aren’t designed to accommodate the different styles of international addresses, which can cause notices to be undeliverable.” That means if you live outside the US, you might not even know you have a “seriously delinquent tax debt” until the State Department cancels your passport.

If you’re a US citizen who values your right to live outside the US or merely travel internationally, H.R. 22 makes it more important than ever to get a second passport. If you don’t qualify for a second passport by virtue of marriage or ancestry, it’s still possible to acquire one by making a contribution or investment to a handful of countries. In exchange, you’ll receive citizenship for life and a passport. The second-citizenship program of the Commonwealth of Dominica is the most affordable of these offerings, although there are at least six others.

It only makes sense to obtain a second passport, “just in case.

I believe in UY Is possible to obtain a passport after a number of years as residents. If so it would be advice able
for US citizens to take advantage of this.

SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
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SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
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SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

SJB Global

SJB Global is a top-rated financial advisory firm specializing in expat financial advice worldwide, offering retirement planning & tax-efficient solutions with a regressive fee model.
Learn More

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US CITIZENS PASSPORT DANGER

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