(1) It might be wise to pay your overdue income taxes before packing for that European river cruise.
A new enforcement provision passed by Congress and signed into law earlier this month allows the government to revoke the passports of seriously delinquent tax scofflaws — people who owe more than $50,000 to Uncle Sam.
“You could be on your honeymoon and they could revoke your passport,” said Tom Wheelwright, a certified public accountant and chief executive officer at ProVision Wealth Strategists in Tempe, Ariz.
Some details still need to be worked out, but the new passport rule indicates the government wants to get serious about collecting unpaid tax debts. The IRS reported 12.4 million delinquent accounts owing nearly $131 billion in assessed taxes, interest and penalties in 2014.
(2) In addition to going after delinquent taxpayers by revoking their passports, the FAST Act highway-transportation bill signed by President Obama on Dec. 4 also gives private debt collectors a shot at forcing taxpayers to make good on their debts. The act includes a mandate that the Internal Revenue Service turn over certain unpaid tax delinquencies to private debt collectors.
The passport-revoking provision allows the Department of the Treasury and the IRS to authorize the State Department to take away U.S. passports from individuals with seriously delinquent tax liabilities. That’s defined as those greater than $50,000 and for which the IRS has filed a lien or levy, according to Matthew D. Lee of law firm Blank Rome. In a blog, he described the passport-revoking provision as a “powerful tool to force tax compliance.” Affected taxpayers would receive written notice.
The State Department is now authorized to deny, revoke or limit use of a taxpayer’s U.S. passport, and it isn’t supposed to issue a passport to anyone owing that much money (with exceptions for emergencies or for humanitarian reasons). Americans out of the country when their passports are revoked may be allowed to return home.
Oh aren’t they so nice.
(3) The number of valid U.S. passports has surged in recent years, from roughly 30 million in 1995 to 126 million this year.
The new provisions wouldn’t affect taxpayers who already have entered deals with the IRS to pay their tax debts, such as installment agreements or offers in compromise. Also, passports wouldn’t be revoked for people who are seeking hearings or who are claiming innocent-spouse relief, according to Lee.
Wheelwright views the $50,000 limit as low, adding that it wouldn’t take much to accumulate that much debt if a person lost a job or incurred big medical bills. It doesn’t help that it’s getting more difficult for people to contact the IRS, which is answering only about 40% of telephone calls from taxpayers, he said. Even tax professionals are looking at average phone waits of about 90 minutes, he said.
On the other hand, many of the people likely to get their passports revoked have been ignoring their tax obligations. An individual typically would receive three or four IRS notices over three to six months before getting to the collections stage, Wheelwright said.
Many of the people with severely delinquent accounts are U.S. citizens who live in other nations, said Mark Luscombe, principal federal tax analyst at researcher Wolters Kluwer in suburban Chicago. Some have dual citizenship and might not worry about losing their U.S. passports. “They feel they can ignore a tax problem for a while.”
Click HERE to read the full law.
(1) For starters, we have to define what kind of “income” they’re talking about, for the tax codes looks at three different types of income; earned, portfolio and passive. And second, they have to determine what KIND of taxes. This is important to know for the alleged “tax cheat” that’s delinquent. You know, since the tax CODES are over 72,000 pages long it does get extremely “technical”, so isn’t it wise to have the taxpayer get technical too?
Oh, and can the IRS define “taxpayer”?
So the American taxpayer is looking to capture over $131 billion in overdue taxes via the IRS huh? I mean, aren’t most of the American people’s votes the reason why the IRS is doing this?
(2) And oooh lookie here, the corporations in the financial industry looking to cash in as well. With over $130 billion, that’s a nice chunk of change to get along with the IRS (if they can collect it all), and please their shareholders too.
And now they have the provision to force compliance. What an awesome strategy. And you know the best thing about all this? The federal government MAY ALLOW YOU, you know, you the long lost child, the pesky tax cheat that doesn’t know how to behave yourself. Well, good news! The daddy government may “ALLOW” you to come back home if you’re in another country and your passport’s revoked. Isn’t that soooooooo nice of the American people?!
(3) Oh now if THIS isn’t the habit of the average American person I dunno what it is. Heck, I don’t even answer my damn phone let along listen to the other person complain. Just text it to me you pesky peasant!
To solve all of this, why not just renounce your citizenship and move to Thailand! Hey, don’t knock any other country until you try it. Other than that, you haven’t left the front porch yet but know all about what’s going on across town.
Ladies and gents, you might be upset or even angry about this new law. But I’m here to bust your patriotic bubble. If you feel some kind of anger towards the IRS, or even the politician that sponsored this bill, then you’re aiming at the wrong thing.
The government IS the way it is because the American people ALLOWED IT. The citizens HAD a Republic, and failed to keep it. So do we have fascism?
What’s fascism you ask? Oh, it’s that type of government some alleged “dictator” mentioned back in the days that the public school text books ordered you to believe had an iron fist over his people? Do you remember his definition of fascism?
For the record, I’m someone that took everything the public school shoved down my young throat, and threw it up. Then, flipped and questioned everything. I encourage you to do the same.
What does Wikipedia say about fascism?
Fascism is a form of radical authoritarian nationalism that came to prominence in early 20th-century Europe. Influenced by national syndicalism, fascism originated in Italy during World War I, in opposition to liberalism, Marxism, and anarchism. Fascism is usually placed on the far-right within the traditional left–right spectrum.
What was that thing the IRS wanted to do on behalf of the American people again?
FAST Act highway-transportation bill signed by President Obama on Dec. 4 also gives private debt collectors a shot at forcing taxpayers to make good on their debts.
Now, I don’t give financial advise, but if this is how the American people roll via the IRS, I see why traders would jump on the opportunity to trade the stocks of these debt collecting corporations looking to cash in on the stolen booty.
However I’m not here to trip on the IRS. They have a job to do. Even though the taxes paid from your labor is NOT paid towards “infrastructure” and social services, it’s put towards something else you may not be aware of. And if you knew, you’d probably blow a gasket. But guess what, it is your responsibility to know where your tax dollars go to. You are a grown person with a mind of your own, and you have the free will to investigate everything the government does.
The IRS is doing this because its clients are desperate. But here’s the kicker; as long as you BELIEVE what you’ve been told; that the IRS collect taxes on your behalf, then therefore they’ll continue doing this. That belief that you have and hold so dearly is EXTREMELY lucrative and valuable to them. That belief is worth trillions of dollars in liquid cash flow. And yes, fear sells.
Welcome to Terry Fairley.common sense
Your not on any mainstream media here, you’re on a site that believes you have a right to look at both sides of the coin. You should hear from the IRS itself to let you know if you’re required to pay an income tax. Yes you. And after you get the information, it’s totally up to you what you do with it from here on out.
Another thing. I encourage you not to be upset if the IRS is NOT working on your behalf. If you’re not the “tax those tax cheats!” kind of person, but a person that believes something is terribly wrong here. You’re the person that says ‘there’s gotta be a solution for every citizen in this country regardless of their financial situation’. If you’re the latter, fret not, there’s an alternative tax code you may want to take a look at.
It is what I believe, a tax code our Founding Fathers would applaud us for, today. Read more here.
To get a more deeper details on this proposed tax code that will literally put the IRS out of business and out of your pocketbook and wallet, CLICK HERE.
So what’s your thoughts on this? Do you agree with this new tactic the IRS is doing? Or are you saying ‘ENOUGH IS ENOUGH!’ No answer is good or bad. Let us know what you think. But remember, the government AND the IRS is only a reflection of how the people as a whole see everything.