Question:
I'm sitting here renewing my Passport.
Form DSP-82 Can anyone answer these
question. Why is my passport information
transferred to the IRS ? There is
a $500.00 penalty if you don't.
Why would the IRS want this info?
Why is my old Passport in English
and French? ie Nationality/Nationalite'
Answer:
Because French is the language of
diplomacy, in which apparently you
need a few lessons. Because French
is still, officially, considered
the internation language. It's also
the language of the international
postal services. That's why your
air-mail envelopes say "Par Avion."
One bureaucracy takes years to change,
162 bureaucracies (or how ever many
countries there are these days)
obviously take centuries.
So they can
track down Americans who are neglecting
to file tax returns while living
outside the US. US citizens, living
and/or working anywhere in the world,
are required to file US federal
tax returns, and -- unless they
can make effective use of tax provisions
such as the Foreign Earned Income
Exclusion (Form 2555) and the Foreign
Tax Credit (Form 1116) -- must pay
US federal tax on their foreign
earnings.
I am a US
citizen, and even though I have
lived and worked in Canada for the
past three years, I am still legally
required to file a Form 1040 every
year. I also file a Form 2555, and
thus get to write off all my earnings
and pay no US tax at all but I still
have to go to the time and effort
to prepare and file the return.
Quite a few Americans living abroad,
however, are not as conscientious
as I am either because they aren't
aware of the filing requirements,
or because they choose to ignore
them.
The IRS is
now getting US passport application
info in an effort to "increase compliance"
with the tax laws (i.e., find people
who aren't filing). I understand
the IRS and the State Department
hope Congress will eventually change
the law so that people who have
been delinquent in filing tax returns
while abroad will be unable to renew
their passports until they make
amends. (Exactly =why= the US feels
it has a natural right to tax foreign-source
income from non-residents, simply
because they are US citizens, would
be a good topic for another discussion.
Most other
countries, FWIW, don't do this.)You
hate the fact that your passport
contains material written in French?
In any case, it is customary for
passports to include the identifying
text in multiple languages, so as
to increase the likelihood that
a border official from wherever
will understand the text in at least
one of the languages used. They
don't all speak English, you know.
French has traditionally been the
"language of diplomacy" in the Western
world for a long time, and it is
a pretty good assumption that no
matter where you travel, any immigration
checkpoint will be staffed by (or
have fairly quick access to) at
least one official who knows either
English or French well enough to
read your US passport.
Years and
years and years ago, long before
the U.S. became the big kid on the
international block that it is ,
French was considered the language
of diplomacy. Why? I don't know.
Maybe back in those days France
was a big center of art and science
and culture.