Don’t Book That Overseas Vacation If You Owe The IRS–Your Passport May Be Revoked!
Congress passed The FAST Act in December 5, 2015 – the “Fixing America’s Surface Transportation Act” to improve United States infrastructure. In addition to the many provisions regarding infrastructure as the name of the act implies, it also allows the IRS to share information with the State Department for the first time. This provision allows the State Department to take action against U. S. taxpayers who owe back taxes.
State Department actions can include the possibility of revoking existing passports and refusing to issue or renew passports.
The threshold amount of tax, penalty and interest owed to the IRS is $50,000. If you are delinquent on $50,000 dollars, which is a relatively small amount of tax for many small to mid-size business, your case can be certified as a “seriously delinquent debt” under the new law. On certification, the IRS can recommend to the Secretary of State to move to deny or revoke the taxpayer’s passport. To certify a taxpayer’s past taxes owed as a “seriously delinquent debt”, the IRS must file a tax lien or a notice of levy.
How can a taxpayer owing $50,000 or more keep their passport? There are three ways a taxpayer can keep their passport. They can enter into an installment agreement with the IRS, secondly, they can enter into an offer in compromise or thirdly, they can secure spousal relief from the IRS. Another way to avoid the certification of a seriously delinquent debt process completely is to pay down an IRS debt to keep the balance under $50,000.
A Collection Due Process Hearing can avoid the certification that may lead to a passport revocation or the refusal to issue or renew a passport. Contact a competent IRS representation specialist at Brown CPA Group.
There are several other ways to get your passport revoked click here for a short list:
https://travel.state.gov/content/passports/en/passports/information/legal-matters/passpoirt-information-for-criminal-law-enforcement-officers.html
The State Department can act fast when it wants to! Edward Snowden’s passport was revoked in only 18 days! https://en.wikipedia.org/wiki/Edward_Snowden
To schedule an appointment to implement this strategy and others within the context of your unique tax situation, Contact Brown CPA Group, Ltd., at (847) 509-4100.
About the author: Ken Smith is an Enrolled Agent and Senior Staff Accountant with Brown CPA Group, Ltd. We know that success means different things to different people. While a business owner strives to maximize profits, increase efficiency and plan for succession; an individual client is more concerned with tax planning, wealth management, retirement and estate planning. At Brown CPA, we work with you on the total picture. Together, we succeed.
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