Continuing our coverage of the continuing clampdown on expatriate Americans by the US government and the IRS, a new bill currently in Congress proposes that passports of US Citizens be revoked based on unpaid debts.
Senate Majority Leader Harry Reid proposed the State Department have the right to revoke, deny or limit passports for anyone the IRS certifies as having “a seriously delinquent tax debt in an amount in excess of $50,000.”
The major flaw of this bill lies in the fact that you do not have to be proven guilty of tax evasion for a passport revocation. It can even happen if the IRS files a lien against you and you will be stuck in the United States until the tax debt is cleared.
This is just another in a series of increasingly strict law targeting American expatriates and Americans who travel and invest abroad. Read more about the clampdown in our previous reports on the Foreign Account Tax Compliance Act (FACTA), Report of Foreign Bank and Financial Accounts (FBAR) and the Hiring Incentives to Restore Employment (HIRE) Act.
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