New Tax Provision Creates Passport Problems
Did you know that the Internal Revenue Service (IRS) now has the legal authority to revoke passports to those who want to travel outside of the United States?
According to the “Fixing America’s Surface Transportation Act” (passed in 2015), the IRS has the power to instruct the State Department to refuse and revoke passports to Americans owing back taxes amounting to over $51,000 (including interest and penalties). In 2018, the IRSannounced that it will be enforcing that law.
According to the IRS, an estimated 362,000 Americans will either be denied passports or their passports will be revoked this year due to delinquent taxes. For those already traveling outside the United States, the State Department will issue “a limited passport good for a direct return to the United States.”
Here’s how it works: once the IRS has determined that a taxpayer has fallen behind on money owed the government, it will inform the taxpayer and the State Department in writing. The State Department will then allow the taxpayer 90 days to correct the problem before a passport application is denied or the passport is revoked.
Delinquent taxpayers who are exempt from having their passports revoked include:
- Those who have an IRS-approved installment agreement and are making timely payments.
- Victims of tax-related identity theft.
- Those suffering such hardships that the IRS has declared their taxes “not collectable.” This includes taxpayers who are already in bankruptcy.
- Taxpayers living in a federally declared disaster area.
- Those who are in negotiations with the IRS for a settlement.
- Those who are paying innocent spouse relief.
As you can tell from the info provided, satisfying the IRS and State Department’s demands will not be an easy task without help. After all, the IRS will do everything within its power to collect owed taxes.
If you are saddled in major debt and are concerned about your passport being revoked, we can help. Anderson Bradshaw Tax Consultants offer the professional experience and legal knowledge to help you remedy your debt with the IRS so that you can return to a more productive, happier life. In fact, we have helped thousands of people negotiate settlements that have reduced debt and removed IRS liens on their property.
Remember: happiness is a direction, not a place. We at Anderson Bradshaw Tax Consultants are here to help you find that direction. Call us now at 877.550.3911 for a free Tax Evaluation or submit your information here.