The IRS has implemented its latest means to get individuals with "seriously delinquent tax debts" to pays their debts or enter into payment plans with the IRS - deny their passport application or deny renewal of their passport.
The procedure was authorized by the FAST Act signed into law in December 2015 and its implementation was started this year. The definition of "serious delinquent" is owing more than $51,000, including interest and penalties 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. The procedure is for the IRS to certify the list of individuals with "seriously delinquent tax debts" to the State Department which will then deny passport applications or renewals for those individuals.
Under IRS regulations there are several ways that an affected taxpayer can avoid having the IRS notify the State Department of their seriously delinquent tax debt. They include Paying the tax debt timely under an approved installment agreement, or under an accepted offer in compromise. In addition those whose account the IRS has determined is currently not collectible due to hardship will not be affected.
We have significant experience working with taxpayers who have seriously delinquent tax debts and obtaining resolutions with the IRS.
If you have delinquent taxes or unfiled taxes, contact us to discuss how we can assist before you run afoul of the IRS most recent collection technique and find that your travel plans will need to be revised.