Post-9/11 Travel Restrictions
If you’re a US citizen thinking you have unrestricted freedom to travel in and out of the country, think again.
Since 9/11, the government has imposed strict controls on international travel:
- Programs like the “Automated Targeting System” and “Secure Flight” require airlines to share passenger data. If the government deems it necessary, they can deny you boarding without explanation.
- “No-fly lists” keep many citizens stuck abroad, unable to return home.
- Hundreds of thousands of citizens can’t get US passports due to reasons like unpaid child support or legal restrictions.
Tax-Related Travel Restrictions
And we can now add “owing taxes” to the list of reasons why you might be prevented from leaving – or reentering – the US.
- Newly authorized IRS access to Customs & Border Patrol (C&BP) databases means that a revenue agent can red-flag your name with the click of a mouse. Already, numerous taxpayers have been tripped up by this system as they attempt to depart the US.
- If a proposed law takes effect, the IRS will be able to revoke the passports of citizens who owe $50,000 or more in back taxes without formally charging them with tax evasion.
Imagine that you’re ready to depart on your vacation to Europe. As you’re passing through the security checkpoint, an agent tells you that you can’t board your flight. The IRS says you owe it money and customs officials have been ordered to confiscate your passport on the spot. You’re now trapped in the US.
The reverse is also true. If you live outside the US but are a US citizen, the IRS presumes that you’re a tax evader. When you renew your passport, you must disclose your Social Security number – and the State Department turns over that information to the IRS. That means if you owe taxes – or haven’t filed tax returns at all – you can be detained as you cross the border back into the US.
Foreign Visitors: Beware
Even foreigners visiting the United States face scrutiny.
The recent online access to their travel history serves not just convenience, but also aids agencies like the IRS in tracking potential tax liabilities.
If foreigners exceed certain stay limits, they’re required to file US tax returns, with reported cases of detentions at borders for alleged tax debts.
If you’re a visitor who has spent more than 182 days in any one year, or an average of 122 days per year over a three-year period within the US, you’re supposed to file US tax and information reporting returns.
It’s Already Happening
The IRS is now targeting Canadian “snowbirds” who flock to Arizona, Florida, and other southern US states to avoid wintry weather at home. The agency is using C&BP databases to count the days these folks are in the US.
Taxes in Canada are higher than in the US, courtesy of the “foreign tax credit,” so snowbirds who are deemed to be US tax-residents usually don’t owe any US tax. But even an innocent overstay can result in a $10,000 fine.
The bottom line: Whether you’re a US citizen or not, if you have filing, reporting, or tax obligations to the IRS, the agency will be looking for you when you cross a US border. Plan accordingly!
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