This is a piece of news for the American community at ExpatConnect: If you are one of the American expatriates living in the UAE, be aware that if you have over USD 50,000 unpaid taxes, the US government might collect your passport.
According to Emirates 24/7, the company deVere Group, which has many thousands of expatriates clients around the world, said this after a news report had been published saying that the US Congress is preparing to introduce a new law to take passports from Americans who owe tax.
The law would allow the federal government to revoke a passport, or deny an application for one, if the individual concerned has more than USD 50,000 of unpaid federal taxes that the Internal Revenue Service (IRS) is seeking to collect.
As the tax paperwork for Americans living abroad has become more and more complicated over the years, many of them have already given up their US citizenship.
As per IRS/Treasury Department records, the number of Americans choosing to give up their passports hit 3,415 in 2014, up 14 per cent from 2013, and 15 times more than in 2008, when only 231 people renounced their citizenship.
Unlike most countries, all Americans fall in the US tax umbrella, regardless in what country they live and earn their money.
Source: Emirates 24/7