What happens to the debt owed due to taxes when living abroad if you renounce your American citizenship? What happens to the debt owed due to taxes when living abroad if you renounce your American citizenship? Does the debt get cancelled or not? I heard that U.S. citizens living abroad don't have to pay any federal or state income tax on the first $105,000 you make. There’s a special tax law that allows for US citizens who are working abroad to have their tax exempt as long as they pass the physical presence test. Let's assume that the person went above the limit by $1,000 before renouncing his citizenship, does he still owe the government $1,000?
Yes, of course you still owe it. There's no logical reason why ceasing to be a citizen should relieve you of existing obligations. The State Department mentions this explicitly Persons who wish to renounce U.S. citizenship should be aware of the fact that renunciation of U.S. citizenship may have no effect on their U.S. tax or military service obligations (contact the Internal Revenue Service or U.S. Selective Service for more information). In addition, the act of renouncing U.S. citizenship does not allow persons to avoid possible prosecution for crimes which they may have committed or may commit in the future which violate United States law, or escape the repayment of financial obligations, including child support payments, previously incurred in the United States or incurred as United States citizens abroad. I think the &quot;may&quot; is just to cover their butts - I can't find any indication of any provision that would forgive tax debts when you renounce. Indeed, renouncing your citizenship may cause you to owe more tax, because of the expatriation tax. Basically, all your unrealized capital gains are treated as if they were realized and taxed on the day before your expatriation, and you owe capital gains tax on them.
Paying taxes with cryptocurrency is a potentially taxable event under federal tax law. It is equivalent for federal income tax purposes, for example, to paying taxes in kind with IBM stock. See, e.g., this IRS FAQ. You can owe capital gains taxes on involuntary transfers. For example, if you own a rental property and don't pay property taxes and it is sold at a tax sale, you owe capital gains taxes and depreciation recapture taxes on the amount realized in the tax sale if it exceeds your basis in the rental property (which it usually would since third-parties bid at tax sales).
Don’t ignore the debt collects In most jurisdictions, your failure to pay can and will be recorded on your credit history. This may affect your ability to obtain finance or the rate you pay for it. For credit reporting, there is no need for the creditor to prove the debt before doing this. For example. In general, you are not legally allowed to default on a contractual obligation (i.e. not pay the bill) even if the other party has defaulted on theirs (i.e. failed to complete the work). It is not clear that you have explained to the contractor that you are withholding the remaining payment until they have fixed the alleged defects or if you have just not paid the money. When you have a contract dispute you need to be clear and take active steps to resolve it. Perhaps head office thinks all these items have been resolved. Perhaps you think they are defects or omissions but they are actually within normal tolerances or are exactly what you contracted for. Unless you talk to them, you can’t resolve it. When you have set out the disputed items, given them a time to fix them, told them you will pay when they are fixed, and possibly set out an alternative method of resolution (like you accepting the defects for a 5% discount) then you have a bona fide dispute. At that point you can tell the debt collector this and they must stop pressing you and remove your name from the credit reports.
Public schools are open to all residents. There is no citizenship requirement and no "tax payer" requirement. Unless excepted for home schooling or attending a recognized private school, in most locations it would not only be allowed, but mandatory between certain ages.
There might be some relevant state law. Michigan has a Social Security Number Privacy Act, which limits use of SS numbers, such as publically displaying an amount of a number, use it as an account number, require it to be transmitted insecurely over the internet, mail it etc. However, it is allowed under 3(a) to mail a number in a document if the purpose is to identify an individual, especially 3(a)(iv), to Lawfully pursue or enforce a person's legal rights, including, but not limited to, an audit, collection, investigation, or transfer of a tax, employee benefit, debt, claim, receivable, or account or an interest in a receivable or account. It would depends on your state, but it is highly likely that debt collection is an allowed purpose (even if it not a real debt, just a good-faith mistake). This gives a brief overview of state laws.
You have the legal (contractual) obligation to pay the amount that you owe for your meal. The restaurant can refuse to accept a particular kind of payment, such as check, cash, credit cards (generally or brand-specific), various cash-transfer programs, foreign currency, bitcoin or ridiculous numbers of pennies. There is no requirement that they do today what they did yesterday. If you have in your possession only a Discover card, and if they are unwilling to accept service barter as payment (washing dishes is classical), then you would have a debt to the restaurant which you must pay in a reasonable time, using an acceptable medium (such as cash, unless they don't accept cash). They cannot make it impossible or highly burdensome for you to discharge your obligation (e.g. they cannot demand Krugerrands or Mongolian ᠲᠥᠭᠦᠷᠢᠭ as the alternative payment, unless you are in Mongolia). You were given advance notice of this possibility of non-acceptance, yet you willfully proffered a card that you knew that they were not likely to accept a second time. Your hands were not clean, and if this had gone to court, you could not expect mercy from the court on the grounds that you were surprised that they didn't accept your card.
My story: UK passport holder, resident in Switzerland, driving from Houston to San Antonio and stopped doing 105mph in a 60mph section of highway. I was given the citation and instructions, etc., but told the officer I was leaving in 2 days and may not be able to tend to it in time. On my return to Switzerland, I called the court and asked how I could pay. I was told I could get a money order from the post office, to which I replied, "Really, the Swiss Post office will issue U.S. money orders?" After a further 15 minutes of conversation about how I was willing but unable to pay, the officer said, "Well, I guess that we ain't commin' to Switzerland to get you so just ignore it!" I asked if I could have that in writing and he asked me to write to the court and explain my situation. 3 weeks later and I received a reply saying all was forgiven and I should have no problem re-entering the U.S. or the State of Texas. So my advice would be to call them, and act willing to pay. Things may have changed and you may be able to pay with a credit card, but if you act willing and they are unable to accept your payment, then as long as you have a paper trail, you should be fine. I have entered the U.S. dozens of times since and have even sponsored visas for others.
There is a form here which you submit to USCIS – immigrated not before 1906, not for a living person. However, to apply for citizenship, one must have been a permanent resident for 5 years, so given the date on the card (and assuming your father did not marry a US citizen), he could not have been naturalized before departure in 1959.