Congress has moved forward in coordinating the State Department and the IRS to enable the government to collect unpaid taxes under IRS Section 7345. In March of 2015, the State Department started releasing Letter 508C, Notice of Certification as a first warning to passport holders owing $50,000 or more on their delinquent taxes and informing them that their ability to travel abroad is at risk. The exact rules are unclear, The State Department can deny or add restrictions on passports at its own discretion.
There are many ways to solutions this dilemma:
- Payment arrangements to the IRS
- Offer in Compromise
- File for appeal of the debt
- Innocent Spouse rule
Anyone renewing a passport may run into issues. The FAST Act requires the State Department to deny the passport to any individual with seriously delinquent tax debt. Before denying the issuance of a passport, the State Department must hold the passport application for 90 days. This is to provide the taxpayer with ample time to reach a resolution.
While this may all be a lot to digest, Business & Financial Solutions is here to help you navigate through the process. Your tax debt does not have to cause restrictions to your passport. Our tax professionals work year-round to prepare your taxes. We also assist clients in resolving outstanding tax issues. Call (855) 557-2222 today, and schedule your free consultation. Click the following link for more in-depth information on Delinquent Taxes.