Taxpayers with Significant Tax Debts Can Lose Their U.S. Passports

Ever heard of the Fixing America’s Surface Transportation (FAST) Act of 2015?  Well, under FAST the IRS has the authority to notify the State Department of taxpayers certified as owing the federal government.  The FAST requires the State Department to revoke the delinquent taxpayer’s U.S. passport and limit the taxpayer’s ability to travel outside the United States.

FBAR

The 1970 Currency and Foreign Transactions Reporting Act, which is otherwise known as the Bank Secrecy Act requires U.S. residents, citizens and businesses with foreign bank accounts and certain other overseas assets to report those interest to the Financial Crimes Network annually on Form 114 by April 15th of the following year.

Giving is good! Giving is Subject to Federal Taxation

Giving in the United States creates tax obligations on the giver. Internal Revenue Code Section 2503 defines “taxable gifts” as the “total amount of gifts made during the calendar year, less deductions provided in subchapter C (section 2522 and following).”  Under United States federal tax laws, the donor (giver) is taxed on the fair market value of the gift.

Federal Taxation of Old Age, Survivors and Disability Insurance Relief

International Social Security Agreements between the United States and certain foreign countries could waive or relieve certain taxpayer citizens of foreign countries with agreements under Section 233 of the Social Security Administration Act.  These International Social Security Agreements are known as ‘totalization agreements’. Totalization Agreements’ purpose is to limit old age, survivors and disability insurance type taxation to the country where the work was done.

Federal Courts Clarify Standard for Proving Taxpayer’s Willful Violation of Report of Foreign Bank and Financial Accounts (FBAR)

United States citizens, lawful permanent residence and certain other persons that are classified under 31 U.S.C. Sec. 5311 and promulgated Regulations must file with the Financial Crimes Network annually a Report of Foreign Bank Account, Form 114.