Another Good Reason to Pay Your Taxes: Keeping Your Passport →

US lawmakers are poised to play hardball with delinquent taxpayers. The Senate has approved an amendment to a transportation bill that would require anyone who owes the IRS more than $50,000 to surrender their passport. From Moodys Tax Advisors:

“While this is a significant development for those who reside in the U.S., it is particularly significant for the estimated seven million U.S. citizens who reside in Canada, Mexico, Europe, or anywhere abroad because current law makes it unlawful to depart, enter, or attempt to depart or enter the U.S. without a valid U.S. passport… 

The bill demonstrates that the U.S. is serious in its efforts to fight tax evasion and off-shore abuses, which is a noble cause. However, consistent with other efforts to date, the inadvertent casualties are U.S. citizens residing abroad. If the bill is signed into law, and its constitutionality upheld, it will be even more important for U.S. citizens residing abroad to bring their reporting obligations current lest they inadvertently find themselves in violation of immigration laws when they cross the border.” 

Read the update: New Life for Law That Would Cause Loss of Passport for Unpaid U.S. Taxes - Moodys LLP Tax Advisors»