Starting in January of 2018, if you have seriously delinquent tax debt, IRC 7345 authorizes the IRS to certify your debt to the State Department for action. What does this mean? First, after receiving certification, the State Department is not likely to issue a passport to you. Second, if you already have a passport, it very likely will be revoked.
Additionally, if you are overseas and your passport applications is denied or your passport revoked, the State Department may issue you a limited validity passport good only for direct return to the United States.
What is seriously delinquent tax debt? In short, it is an individual's unpaid, legally enforceable federal tax debt. It must total more than $50,000 (including interest and penalties) for which a Notice of Federal Tax Lien has been filed and all administrative remedies under IRS 6320 have been lapsed or been exhausted, or a levy has been issued.
Some Tax Debt is not included in determining seriously delinquent tax debt, even if it meets the above criteria. It includes tax debt:
- Being paid in a timely manner under an installment agreement entered into with the IRS
- Being paid in a timely manner under an offer in compromise accepted by the IRS or a settlement agreement entered into with the Justice Department
- For which a collection due process hearing is timely requested in connection with a levy to collect the debt.
- For which collection has been suspended because a request for innocent spouse relief under IRC 6015 has been made.
- In addition, certification will be postponed while an individual is serving in an area designated as a combat zone or participating in a contingency operation.
If you are seriously behind in paying a significant past due IRS debt be aware that you are jeopardizing your ability to travel out the U.S. for business or for pleasure. Further, if you are stripped of your passport in the middle of a trip abroad, you may have to cancel any remaining planned stops and be required to head straight back to the U.S.
JLD Tax and Accounting knows how to help resolve with the IRS any seriously delinquent back taxes you may owe, and will move promptly and expertly to deal with your particular situation. So don't procrastinate any longer -- call us today, (201-604-2432) for your initial consultation.