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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThousands of Americans Will Be Denied a Passport Because of Unpaid Taxes
Recently IRS officials have provided new details on the enforcement of a law Congress passed in late 2015. It requires the IRS and State Department to deny passports or revoke them for taxpayers who have more than $51,000 of overdue tax debt. Enforcement began in February.
An IRS spokesman says that 362,000 people are current tax debtors who are affected by the law. The IRS is sending their names in batches to the State Department, a process the tax agency aims to finish by years end. A State Department spokesman confirmed that it has already denied passports to some debtors.
IRS Division Commissioner Mary Beth Murphy said in late June that for now U.S. authorities are denying passports rather than revoking them. So, many tax debtors with current passports should be able to travel abroad, but they wont be able to renew their passports; those without passports will be denied them if they apply.
The new enforcement is having an effect: Ms. Murphy said that one tax debtor paid $1 million to avoid passport denial. As of late June, 220 people had handed over $11.5 million to pay their debts in full, and 1,400 others had signed installment agreements, according to an IRS spokesman.
National Taxpayer Advocate Nina Olson is critical of some of the new procedures, however. One objection is that the IRS notifies a tax debtor at roughly the same time it tells the State Department that someone qualifies for passport denial. This may not leave enough time to resolve tax issues and have the IRS and the State Department lift restrictions, she said.
Instead, Ms. Olson would like the IRS to warn debtors 30 days before the agency sends their names to the State Department. She said this is similar to what the Department of Health and Human Services requires before someone is denied a passport because of $2,500 or more in unpaid child support.
More..
https://www.wsj.com/articles/thousands-of-americans-will-be-denied-a-passport-because-of-unpaid-taxes-1530869401 (paid subscription)
beachbum bob
(10,437 posts)Sherman A1
(38,958 posts)I actually like the idea.
Amishman
(5,554 posts)Sounds fine to me.
question everything
(47,444 posts)bitterross
(4,066 posts)Where is the due process in this? They are denying people the right to enter and exit the country freely. What if your employment depends upon having a valid passport and you have contested debt with the IRS? How are you going to pay your debt if you've been fired.
This is just as bad as taking away people's driver's licenses for unpaid court fines.
This is not a good thing.
beachbum bob
(10,437 posts)FBaggins
(26,721 posts)Only people identified as seriously delinquent are involved. That doesnt just mean that they owe more than the reported $51k, but also that a tax lien has been filed (which already involves due process) AND that the time period for appeal has passed. Or that they have advanced far enough in the process that a levy has been issued.
And if youve appealed any of the prior steps, they cant withhold the passport.
No shortage of due process. There could be no excuse for this catching you by surprise.
beaglelover
(3,460 posts)lostnfound
(16,162 posts)I personally got a letter saying my passport could be revoked due to $57 in unpaid taxes as I am a trustee. An accountant handled the taxes this year for me and they were paid in full on April 15th. Neither of us know the reason for the $57.
beachbum bob
(10,437 posts)people's tax refunds for non-payment of student loans, child support.
lostnfound
(16,162 posts)I feel so reassured... NOT
Soxfan58
(3,479 posts)If it equal along all income levels
lostnfound
(16,162 posts)dumbcat
(2,120 posts)giving the Trump administration this power. He should have known it could be misused.
countingbluecars
(4,766 posts)should cancel his upcoming trips.
phylny
(8,368 posts)question everything
(47,444 posts)malaise
(268,724 posts)Most excellent.
hunter
(38,304 posts)They've got to start somewhere. Nobody likes mediocre tax cheats; only the skilled tax cheats and tax loophole spelunkers are celebrated in our society.
Maybe Trump and the Republicans are looking to Russia and North Korea for advice on holding populations captive.
Pumping up xenophobia makes a large numbers of U.S. Americans keep themselves at home, no walls required. For example, I sometimes meet people who who say they would NEVER visit Mexico, hell, they won't even visit the Mexican market neighborhoods of my own community. They believe Canada is an arctic wasteland, some hellish version of Alaska where you have to wait two years to see a doctor.
Whipping up anti-immigrant frenzy allows the kleptocrats to build the physical walls that will later confine us when the U.S. becomes a police state and the economy turns fully anaerobic and most of us essentially slaves.
former9thward
(31,949 posts)hunter
(38,304 posts)Thankfully I protected myself with a tinfoil hat emoji or my DU reputation would be ruined.
lostnfound
(16,162 posts)former9thward
(31,949 posts)lostnfound
(16,162 posts)And he may have assumed thered be the rule of law enduring, as opposed to this ignorant tyrant.
former9thward
(31,949 posts)Just as Congress does. If a President has disagreements with a particular section of a law he can issue a signing statement and President Obama issued many of those. A signing statement does not change the law but is a statement showing the president disagrees with a particular section but is signing based on the overall law.
lostnfound
(16,162 posts)Obamas statement was this bill is not perfect and maybe he would have had more to say but he signed it two days after the San Bernardino shooting, just hours to spare before the scheduled expiration of the nation's road and transit spending.
Heres his statement
http://www.presidency.ucsb.edu/ws/index.php?pid=111222&st=&st1=
I just love it when people blame Obama for everything the GOP Congress that voters gave him to work with for most of his presidency.
former9thward
(31,949 posts)I don't think tax cheats should be allowed a government service like a passport. I don't think they should be allowed to flee the country while owing taxes. If they can afford to travel to different countries they can pay their taxes. `
Girard442
(6,066 posts)Later, dial down the amount to anything over $100. Then people with outstanding warrants. Then anyone with any pending legal action. Then start arresting people willy-nilly at protests, so they can't leave with a legal action pending. And so on.
Pretty soon, only Party Members in good standing will be able to travel abroad.
DBoon
(22,340 posts)How hard would it be to deliberately charge your political opponents with tax evasion simply to persecute them for being an opponent?
It is much easier to manufacture this offense than say murder which requires an actual body.
The tax code is arcane enough that anyone who fills out a 1040 and has deductions could be charged.
Girard442
(6,066 posts)After all, those folks who want to leave this fine country are probably up to something, right?
DBoon
(22,340 posts)Which consisted of any contact with the non-Soviet world?
lostnfound
(16,162 posts)Oops. Somehow our lists got mixed up...We will fix it...as soon as practicable.
pecosbob
(7,533 posts)I'd start with automatic annual audits of anyone that makes more than $250,000.
bitterross
(4,066 posts)Do you know how easy it is to get to that much debt with the IRS? You loose your home and the bank writes off the debt. Boom, you get a 1099-C for the write-off and now you owe taxes on money you never had for a home you got in the boom. Then, they add penalties and fees. And keep adding interest.
Where is the due process in this? They are denying people the right to enter and exit the country freely. What if your employment depends upon having a valid passport and you have contested debt with the IRS? How are you going to pay your debt if you've been fired.
This is just as bad as taking away people's driver's licenses for unpaid court fines.
This is not a good thing.
question everything
(47,444 posts)From the above, perhaps I should have included in the OP:
Taxpayers typically arent subject to passport restrictions if theyre contesting an assessment administratively or in court, or if they have pending or current installment-payment agreements or offers-in-compromise with the IRS.
Also excluded are many taxpayers who are victims of identity theft; have requested innocent-spouse relief; have debts in not-collectible hardship status; are in bankruptcy; are in a federally declared disaster area; or are serving in a combat zone.
In addition, the State Department can issue a passport for emergencies or humanitarian reasons. A department spokesman said it does so to make sure an American citizen overseas can return to the U.S.
=====
Per your concerns: if someone is in such dire circumstances, that person probably cannot afford traveling abroad, anyway.
Hekate
(90,565 posts)Just cut us off from the rest of the world physically, psychologically, and legally. MAGA.
GulfCoast66
(11,949 posts)And apparently neither did President Obama when he signed it into law.
lostnfound
(16,162 posts)stevenleser
(32,886 posts)when you exit the country in Panama, you have to pass through a checkpoint where, if you are a citizen, they verify you have no outstanding tax debt or owe any fines to the country. If you do, you are denied entry to the secure part of the airport. It's right before you get to go through the metal detectors. I always remarked how awful I thought that was.
If Obama did this, he was wrong.
brooklynite
(94,384 posts)lostnfound
(16,162 posts)brooklynite
(94,384 posts)Are you suggesting that he was too ignorant to know what was in the Bill?
lostnfound
(16,162 posts)Obama did no wrong, by my count, on anything. In 8 years. Though, if he had to blow up trump tower to stop trump from becoming president..maybe would have been a better outcome.