There was a law passed, sometime ago now, that allows your tax issues to affect your international travel plans.
The Internal Revenue Service is set to enforce the directives beginning January of 2018.
Under this law, governed by Internal Revenue Code Section 7345, the IRS will notify the State Department to revoke your current passport and/or deny passport applications due to ‘certain’ tax delinquencies.
The law also gives the IRS discretionary enforcement options.
The State Department generally will not issue a passport to you after receiving certification from the IRS.
What does this mean for your current or future travel plans?
If you already have a U.S. passport, you can use your passport until you are notified by the State Department that it has been revoked.
What if I need my passport to keep my job?
You must fully pay the balance, or make an alternative payment arrangement to have your certification reversed.
How will I know if my passport is revoked?
The IRS will send written notice by regular mail to your last known address. This is usually the address provided on your last filed tax return.
However, Taxpayer Advocate Service has identified cases in which taxpayers affected are not receiving proper written notification of revocation status.
“The passport language in the broader [Collection Due Process] notice is delivered at a time when the taxpayer is focusing on resolution of the debt and claiming [Collection Due Process] rights – thus the language is buried among the other information and may not constitute effective notice.’ – National Taxpayer Advocate. (2017, July 7). The IRS’s New Passport Program: Why Notice to Taxpayers Matters (Part 1 of 2). Retrieved November 07, 2017, from https://taxpayeradvocate.irs.gov/news/the-irs-s-new-passport-program-why-notice-to-taxpayers-matters-part-1-of-2
What if I satisfied or ‘settled’ my tax debt?
The IRS will make this reversal within 30 days and provide notification to the State Department as soon as practical.
Because revocation will not be reversed automatically, there are cases in which an application of reversal may be required. You should receive a written notice of reversal in the mail.
Contact your tax professional to determine actions appropriate to ‘settle’ your seriously delinquent tax debt.
Once you ‘settle’ your tax debt or make appropriate arrangements, there are remedies to reverse the delinquent status with the State Department and remove restrictions for your passport.
You may contact the State Department at the National Passport Information Center to verify if your passport status: 1.877.487.2778.
If you have tax issues – obtaining representative may be crucial. Review our blog on benefits of tax representation.