Is Your Passport In Jeopardy?

In today’s income tax environment, The Internal Revenue Service is strongly encouraging taxpayers who are seriously behind on their taxes to pay what they owe or if they can’t, to enter into a payment agreement with the Service in-order to avoid putting their passports in jeopardy.

Beginning immediately, the IRS is implementing new procedures that will adversely affect individuals with “seriously delinquent income tax debts.” These new procedures and provisions which are a part of the FAST Act, that is the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015, requires the IRS to notify the State Department of taxpayers that it has certified as owing a seriously delinquent tax debt. The FAST Act also requires the State Department to deny a delinquent tax payer’s passport application and to deny such tax payer’s passport renewal. With this mandate, the State Department is empowered to even revoke a delinquent tax payer passport.

Therefore, if you are a taxpayer with a seriously delinquent tax debt, you are in the cross-hairs of the IRS and you need to take immediate action to prevent the non-issuance, non-renewal or revocation of your passport. If you need expert guidance in settling your IRS debt, the Tax Resolution Experts at Metro Accounting and Tax Services will be happy to be of assistance. At times we are able to get an IRS Offer In Compromise for taxpayers that amounts to far less than what is owed to the IRS.  Taxpayers affected by this law are those with a seriously delinquent tax debt.  A taxpayer with a seriously delinquent tax debt is defined by the IRS as generally being someone who owes the IRS more than $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.

There are several ways taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt. They include the following:

  • Paying the tax debt in full – who has the money to do that?
  • Paying the tax debt timely under an approved installment agreement,
  • Paying the tax debt timely under an accepted offer in compromise,
  • Paying the tax debt timely under the terms of a settlement agreement with the Department of Justice,
  • Having requested or have a pending collection due process appeal with a levy, or
  • Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.

For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State Department and the individual’s passport is not subject to denial during this time.

Let’s face it, the IRS is going to collect on the taxes owed by tax payers. Therefore, it is recommended that tax payers who are behind on their tax obligations should approach the IRS with a view to have a dialogue to pay the back taxes or enter into a payment plan with the IRS.

The reality is that most people are unable to pay the IRS the full amount owed. If you are a financially distressed taxpayer and you cannot pay what is owed, Metro Accounting And Tax ServicesCPA can held. We are tax resolution experts. We can negotiate a lower tax bill on your behalf with the IRS. Just give us a call and we can get on working for you so, 404-990-3365.

User | 15/01/2018