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Now it’s Official: No Taxes, No Passport

Sunday, December 20, 2015

We wrote about this in November and wanted to inform everyone that the passport provision is now in effect. This is official, ladies and gentleman.  President Obama has signed the bill making a new IRS Revenue Code. The new law allows the U.S. State Department to revoke, deny or limit a passport if someone has a tax debt the IRS identifies as delinquent over the amount of $50,000. The new rule is part of H.R.22, a transportation act funding bill.   The details are not quite understood yet, but if you have a tax debt in the amount defined as delinquent by the IRS, you will have a problem with your passport. In fact, this could also mean that there will be existing passports rescinded. 

Tax experts estimate that this new law could save the federal government nearly $400 million over the next ten years. Next month, Congress will enact this new law which will give the federal government the ability to rescind the passports of Americans who have a tax debt and have not made plans to settle it.  With this new law, the U.S. State Department will be able to deny new passports to those who have tax delinquencies.

The IRS is working on identifying a list of taxpayers with tax delinquencies equaling $50,000 or more that will include interest charges and penalties.  And those penalties add up quickly.  If a U.S. citizen needs to travel for a certain humanitarian cause, that will be an exception if they happen to have tax debt.  However, if a U.S. taxpayer is on a current IRS payment plan or has a pending tax case pending in tax court, then this humanitarian rule will not apply to them. 

The Strategic Tax Lawyers, Los Angeles based tax attorneys, can help you contest a tax bill with the IRS in court before it becomes a tax debt. This is now a very important aspect when it comes to this passport provision. You don’t want to have a lingering debt over your head, as the repercussions are more serious now since there is a chance you will not be able to leave the country.  There will be an exception made for humanitarian reasons.  Even if the IRS has filed a notice of lien in excess of $50,000, you could have your passport revoked. This is a very serious matter. There are millions of Americans living overseas. If they owe over $50,000 to the U.S. government, there may be a chance that they will not be flying back to the U.S.  

If you have outstanding tax debt in excess of $50,000 there is a chance that the State Department can rescind your passport or not issue a new one.  Contact the Strategic Tax Lawyers, Los Angeles based tax attorneys who specialize in the tax code with years of experience in tax-related and IRS issues. The Strategic Tax Lawyers have over fifteen years of experience successfully helping clients deal with the IRS. Contact the Strategic Tax Lawyers at (800) 669-4775 for a free case consultation.