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Noelle
Joined: 26 Mar 2005 Posts: 361 Location: USA
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Posted: Tue Dec 08, 2015 2:30 pm Post subject: New Law- U.S. passports revoked if you owe IRS debt! |
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Hi Americans
I just read the new passport law thread. It was very helpful- thank you to the original poster.
I received this news this morning:
http://www.forbes.com/sites/robertwood/2015/12/04/irs-power-over-passports-signed-into-law/
Of course I immediately thought of expat teachers living in the Gulf. I definitely think this is worth passing around. I knew something like this was coming. The $50,000 IRS debt figure looks quite high to me, but maybe it's not when you consider how many people live in the Gulf long term?
Anyway- just wanted to pass it on. Apologies if this has already been addressed here. I didn't do a search. |
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veiledsentiments
Joined: 20 Feb 2003 Posts: 17644 Location: USA
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Posted: Tue Dec 08, 2015 3:50 pm Post subject: |
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Note that this refers to tax liability, NOT taxable income. This will never affect overseas teachers since 95+% of them pay no taxes and it would take the few that do dozens of years to accumulate a $50,000 tax debt. LOL
This is targeted towards high pay and benefit business executives who may not declare all their pay and benefits. And also, of course, those who are in illegal activities... like drugs or smuggling.
They have always had the right to withhold passports, but this law sets up a procedure and a dollar limit.
VS |
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spiral78
Joined: 05 Apr 2004 Posts: 11534 Location: On a Short Leash
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Posted: Thu Dec 10, 2015 9:09 pm Post subject: |
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Quote: |
it would take the few that do dozens of years to accumulate a $50,000 tax debt |
Actually, it's far more feasible than it might seem, unfortunately. A long long time ago, the IRS mistakenly thought I owed 6,500 usd in unpaid taxes. Due to a fire and a long-distance move, it took me about 18 months to collect the necessary paperwork to prove that I had in fact paid the tax on time.
During that 18 months, there was a red IRS flag on my credit rating, and by the end of the 18 months, I 'owed' nearly 32,000 usd, counting interest and penalties.
Interest and penalties are very severe, and the burden of proof is on the taxpayer (guilty until proven innocent).
VS is correct, though, that basically no EFL teachers should ever owe US taxes from their pay. None of us are paid enough! But there are other things that could trip someone up, like selling property back home or forgetting to file tax forms annually, and probably hundreds of other possible pitfalls awaiting the innocent that most of us never see coming. |
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