You're watching...

Could IRS debt keep you from getting a passport?

Details

  • Description

    David Selig says your IRS debt could potentially keep you from traveling

  • Duration 6:10
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance

Transcript

This transcript is automatically generated

Would you be concerned about that too is well if you owe some back taxes you could actually have your passport suspended.

If proposed deal goes through now the bill sponsored by Democrat Barbara Boxer would allow the federal government to prevent any Americans who owed back taxes.

From traveling outside the US -- -- -- Selig thinks this is an outrageous abuse of power he is a federal tax practitioner and -- that talk about it and on -- surface it it kind of seems like a knee jerk reaction all these people owe back taxes we could collect.

You know blanket of billions or millions amount of dollars if we just go after these people how best to do that well let's revoke their.

They're they're -- for what's wrong with this.

Well.

First of all I think thing -- -- knee jerk reaction is to minimize the actual force of contempt of this proposed senate bill by ms.

boxer.

What is happened is -- the Internal Revenue Service assesses the liability.

Against deal.

Whether there're -- you both these monies or not you were yeah.

Ability to travel can be restricted they can actually under the provisions in the senate bill.

1813 revoke.

Or suspend your passport makes a couple of assumptions that really are not correct one it assumes you're a flight risk.

-- it assumes that you don't have substantial contacts to the form where you living or business and three of The -- you've done something wrong.

In many cases people have not done anything wrong they can be assessed the liability through a business that perhaps there a bookkeeper to.

War in investor and then the IRS says you are responsible person lot of liabilities pierce the corporate -- and -- to the individual.

And it is just how re just we should not stand for the fact that they have -- this.

So this infrastructure -- highway plan should give a -- pause to say hey.

Let's look at this closely.

Now -- of -- -- monetary limits the maximum I made the minimum here is 50000 dollars -- you owe back taxes -- 50000 dollars or more that's -- -- you know this will kick -- I heard a rumor for years ago.

There was a mix up in mind taxes and I think it was like 34000 dollars and and that actually was bad enough actually -- and in my credit rating actually believe it but it was the IRS -- -- that wasn't my fault -- but it.

It's still hasn't caught up.

It's -- 50000 dollars so 50000 dollars seems like a lot of money who would that look like what is -- typical person who would have 50000 dollars in back taxes.

Well that could be anybody it could be an individual who.

Was working.

Under the impression that they were an employee in their later turns out -- independent contractor.

War there was some sort of funny business going on or it's -- that liability it's imputed to you you took a position it turns out not to be correct.

But I would remind everybody in your viewing audience not.

When they file a lien against you for 50000 dollars and let's say you pay 101000 dollars they don't make a downward modification of that we.

When they were on how much you -- it'll still say there's a -- for 50000 dollars.

Now this will imbued the Internal Revenue Service with much more expensive bowers and -- That they are not presently equipped to handle right now these men and women -- working the Internal Revenue Service their resources are being spread.

So -- and now to house them.

Reviewing passports and free travel is unbelievable not to mention the cost that the average taxpayer will incur if you -- -- contest.

-- what an up there I was going ask your question about exactly what the IRS how does that change the structure of the IRS and how does that demand would demand that they actually.

Expand the boot where -- -- and and and can they do that.

Well they're going to -- do in this and I don't want to make this a partisan issue but this.

The administration has sought to expand the Internal Revenue Service mightily for instance.

The health care would be enforced on terror the Internal Revenue Service so -- that you were brought in on an -- -- an -- mix up.

You could be asked to provide proof of health care.

Coverage -- if you didn't have that that may be a gateway to a much more expensive audits.

This provision this.

Bill that's being pushed by Barbara Boxer of this 1831 senate bill he really hearkens back to Nazi Germany.

And I don't have a -- how so though because it is so now.

It is serious.

Talented and -- know who have criticism you think it's a little accident in Nazi Germany.

-- and I say that unabashedly without in any way diluting it it.

Puts such a burden on the individual.

The presumption in this case is that the government is right.

And you quite literally have no rights now in this provision they say they'll be make some exceptions for humanitarian.

Or emergency purposes.

But what are they really saying if you -- a business person.

You'd better pay up right now whether you know -- -- not.

And if you are indigent and they have a worthless judgment maybe they'll let you go home and visit your sick.

Mom yeah so it's very unfair on its face and how are they supposed to collect back taxes because you hear constantly about people who are collecting it at that are in -- -- in terms of taxes and and how much like -- period would be how many millions or billions of dollars they could actually.

Put it in the in the -- coffers.

If people we actually just pay their taxes.

People are paying their taxes I would say the real shortcoming is the financial accountability.

Of our elected officials who spend wildly more than they get so they claim there's this large.

Tax gap the fact of the matter is a lot of people over pay their taxes now I know somebody is sitting there and saying -- -- in the IRS sent me back.

-- 123 dollars sure.

They will catch that sort of thing.

But if you're in the business and you treat something in the way that you shouldn't treat you overpay by a couple 100000 dollars will be on this is on you.

Alone they're not gonna send that back and say you could've done this differently than what I would say as we needed a return to.

Generally accepted financial principles of accounting principles from our elected officials.

And we're already overtaxed.

Now.