Clients who owe U.S. tax could lose passports

Your clients with U.S. citizenship will need to be more vigilant about filing U.S. taxes and having a U.S. Social Security number starting Jan. 1 — or they’ll risk losing their passports, says Kevin Kirkpatrick of Moodys Gartner Tax Law.

Read: Ultra-wealthy may face more IRS scrutiny

Congress passed IRC § 7345 this December, a bill that gives the IRS the ability to share information on delinquent tax accounts with the State Department. The department can then deny or revoke passports of American citizens who have over $50,000 in tax debt, or no Social Security number associated with their passports.

Critics of the new law say the $50,000 threshold is too low because of how quickly interest and penalties can add to tax owing. For more details, read more here.

Also read:

The pitfalls of non-resident PoAs

Getting U.S.-licensed creates a new client stream

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.