IRS & Passports – Settle Now with the IRS or Lose your Passport ?

October 31, 2013
Written by: Fresh Start Tax

Fresh Start Tax
Uncle Sam is ready to play hardball.
If you owe over $50,000, you better  contemplate settling your tax debt as soon as you can through the IRS offer in compromise and now is the best time.
You have a 38% chance the IRS will settle your case once and for all.
If you need to settle call us today and speak to former IRS agents who can settle your case if you qualify.
We can walk you through the IRS Pre-Qualifier tool to see if you are eligible.
Here’s a story to remind us that government processes can directly impact our travel plans:
A law buried in a proposed bill could prevent U.S. travelers who owe taxes from leaving the country.
According to a report that appeared in Forbes this past spring, Bill 1813 contains language that would allow the government to take passports away from travelers in debt to the Internal Revenue Service (IRS).
The bill is currently pending in the House of Representatives.
In March, the Senate passed Bill 1813, which was introduced by Senator Barbara Boxer. The bill is more than 1,000 pages long and mainly addresses the allocation of federal funds for transportation purposes.
But planted in the bill is an amendment that would permit the State Department to take away a person’s passport if he or she owes significant back taxes to the IRS.
Here’s what it says in section 7345 of the proposed legislation:
“If … any individual has a seriously delinquent tax debt in an amount in excess of $50,000, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport.”
According to the bill, your passport won’t be revoked if you pay your debt “in a timely manner” or if you need a passport for “emergency circumstances or for humanitarian reasons.”
Note that the passport revocation only applies to instances of “seriously delinquent” debt of more than $50,000.
This isn’t limited to criminal tax cases or situations where the government fears someone is fleeing a tax debt. The bill, 1813 still needs to be passed by the House and then signed by the House.
There is always the possibility a part pay agreement with the IRS may due the trick as well so you can keep your passport.
If you are in this position do not wait to the last minute because IRS will be flooded with requests to settle.
 
IRS & Passports – Settle Now with the IRS or Lose your Passport ?

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