Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

NSTPInternal Revenue Service (IRS), Passports

Individuals Who Need Passports for Imminent Travel Should Contact IRS Promptly to Resolve Tax Debt

Taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. To avoid delays in travel plans, taxpayers need to take prompt action to resolve their tax debt. In January of last year, the IRS began implementing new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act. The law requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt, which is $52,000 or more. The law also requires State to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit ability to travel outside the United States. When the IRS certifies a taxpayer to the State Department as owing a seriously delinquent tax debt, they receive a Notice CP508C from the IRS. The notice explains what steps a taxpayer needs to take to resolve the debt. Please note, the IRS doesn’t send copies of the notice to powers of attorney. IRS telephone assistors can help taxpayers resolve tax debt, for example, they can help taxpayers … Read More

NATIONAL TAXPAYER ADVOCATE NINA OLSON COMMENTS ON PASSPORT REVOCATION Copy

NSTPPassports, State Department

During a meeting of the American Bar Association, Nina Olson commented that procedures in place to revoke passports for those with a tax liability are raising a constitutional issue that could be used against the Internal Revenue Service. She has argued that individuals need more time to come into compliance before the State Department is notified that their passports should not be issued, renewed or in some cases revoked. The program has been in place for nearly a year and was mandated by the Fixing America’s Surface Transportation Act (FAST Act). Upon receiving certification, the State Department shall deny a passport application and/or may revoke a current passport. If the passport application is denied or revoked and the taxpayer is overseas, the State Department may issue a limited validity passport good only for direct return to the United States. Currently, taxpayers get a final notice by the IRS that they are about to lose their passports at roughly the same time as their tax debts have resulted in a notice to the State Department. In some cases, taxpayers have paid their debts, but the IRS database has not been updated by the time the State Department is notified. She also … Read More