Planning on going abroad this summer? If you have unpaid taxes, then your summer plans could be in trouble. If you have a seriously delinquent tax debt, the IRS could prevent you from renewing or obtaining a passport. Last year, the IRS began implementing a new procedure that affects individuals with seriously delinquent tax debts. The new procedure implements provisions of the Fixing America’s Surface Transportation Act (FAST).
The law requires the IRS to notify the State Department of taxpayers the IRS has certified as owing seriously delinquent tax debt. Seriously delinquent tax debt is considered owing $52,000 or more in back taxes, penalties, and interest. The IRS will have also filed a Notice of Federal Tax Lien and the period to challenge it has expired. The law then requires the State Department to deny those taxpayers their passport application or their passport renewal. If the taxpayer has a currently valid passport, the State Department could either revoke the entire passport or limit the taxpayer’s ability to travel outside the U.S.
If you are certified by the IRS as a taxpayer with seriously delinquent tax debt, then you will receive a Notice CP508C from the IRS in the mail. The notice will tell you what steps you need to take to resolve the tax debt. If you have a tax lawyer representing you, they will not receive this notice. If you receive the letter, you should try to resolve the unpaid tax debt. For instance, you can enroll in a payment plan through the IRS or try for one of the several types of resolutions the IRS offers. Some of these resolutions take longer than others, so keep that in mind if you plan to travel soon. You may also look at hiring a tax lawyer to help you qualify and expedite the process.
Once you have either paid the tax debt in full or qualified for a resolution, the IRS will reverse your certification within 30 days. That will notify the State Department to remove the certification from your record and then your passport will no longer be at risk.
Before denying a passport renewal or new passport application, the State Department will hold the taxpayer’s application for 90 days to allow them to either resolve any erroneous certification issues, pay the tax debt in full or enter into a payment arrangement or resolution with the IRS.
If you owe taxes and plan on traveling, make sure to take care of your taxes before you plan any travel. A revoked passport could cause trouble for you and could stop any family vacations or business trips. If you need help, call Polston Tax. Our team of tax lawyers settles unpaid tax debts every day and help taxpayers move forward with their lives. Call us today at 844-841-9857 or click below to schedule a free consultation.