Tax delinquency is not a new thing in the United States. But now, the delinquency is going to cost one dearly. The government of USA is aiming to have a debtors’ prison in the country.
It has been known from trusted sources that very soon the Internal Revenue Service will begin to deny passport issuance to some American citizens, who have not paid their taxes. In many cases the passports of tax delinquent Americans might also be revoked. The government will play a pivotal role in making sure that tax delinquent people will be taken under arrest. Infact they will also be denied the right to travel. On the whole, tax delinquents in US are going to face some serious brunt from the government.
There are some confusions in this matter which need to be cleared. The topic that is being discussed is not about American citizens who are convicted of tax fraud or tax evasion and are awaiting criminal trial for charges on tax related matters. The tax delinquents, who are being discussed here, are not charged with any kind of crime, leave alone convicted of one. These Americans just have unpaid taxes to the US government. The amount of the unpaid taxes can reach up to $50,000 or more. It has been seen and even ensured by the IRS that there are times when relatively small unpaid tax amounts can turn into a liability which can amount to $50,000 or more in just no time at all.
The IRS has excellent collection procedures and investigative tools at its disposal. As per the Patriot Act, American citizens are not obliged in any way for filing detailed paperworks with the Department of Homeland Security. They do not need to show details of their business arrangements, personal affairs, health-insurance coverage, personal affairs etc. However, the IRS in the country has some powers in their hand. It has the capacity of garnishing wages, seizing assets, putting liens on properties and so on. However, inspite of all these efforts, there are times when the IRS is not able to collect the due debts. People nowadays have devised many plans through which they can conceal their property and income from the government’s notice. On the other hand, there are people who just cannot pay the taxes as they cannot afford the same. Understanding the actual situation is actually quite difficult for the IRS.
There are reports which show that the IRS has been extremely harsh on tax delinquents in the US and even restricted their travel. It is also being told that tax fraud is actually a crime. But if one is a tax delinquent, it does not come under fraud. There are mixed reactions on the matter. However, the issue is expected to get really serious with time. The best thing to do in this regard is to pay the taxes on time keeping little or no dues preferably so that the IRS can bring no charge on you. This is one way of keeping your US passport safe from the IRS.
