On June 18, 2018 we posted Revocation & Denial of Passport For Unpaid Taxes Is Happening NOW! where we discussed that the IRS issued Notice 2018-1 on January 16, 2018, which provides guidance for implementation of the new IRC 7345 and also discussed that the IRS webpage on Revocation or Denial of Passport in Case of Certain Unpaid Taxes contains the following alert:
Now IRS as indicated that at least 362,000 Americans have “seriously delinquent” overdue tax payments and will be denied passports or passport renewals if they do not pay the money they owe, The Wall Street Journal reports.
There are several ways taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt, they include paying the tax debt in full, paying under an approved installment agreement, or under an accepted offer in compromise agreement or any of the other IRS collection alternatives.
Payment Of Taxes
If you can’t pay the full amount you owe, you can make alternative payment arrangements such as an installment agreement or an offer in compromise to have your certification reversed.
If you disagree with the tax amount or the certification was made in error, you should contact the phone number listed on Notice CP 508C: 1-866- 519-4965 (International callers: 1-267-941-1004). If you’ve already paid the tax debt, please send proof of that payment to the address on the Notice CP 508C.
If you recently filed your tax return for the current year and expect a refund, the IRS will apply the refund to the debt and if the refund is sufficient to satisfy your seriously delinquent tax debt, the account is considered fully paid.
Passport Status
If your U.S. passport application is denied or your U.S. passport is revoked, the State Department will notify you in writing. If you need your U.S. passport to keep your job, once your seriously delinquent tax debt is certified, you must fully pay the balance, or make an alternative payment arrangement to have your certification reversed.
Once You’ve Resolved Your Tax Problem With The IRS,
The IRS Will Reverse The Certification Within 30 Days Of Resolution Of The Issue And Provide Notification To The State Department As Soon As Practicable.
WHO CAN AFFORD TO BE WITHOUT THEIR PASSPORT FOR AT LEAST 30 DAYS?
Travel
If you’re leaving in a few days for international travel, need to resolve passport issues and have a pending application for a U.S. passport, you should call the phone number listed on Notice CP 508C - If you already have a U.S. passport, you can use your passport until you’re notified by the State Department that it has been revoked.
If your passport is cancelled or revoked, after you’re certified, you must resolve the tax debt by paying the debt in full, making alternative payment arrangements or showing that the certification is erroneous.
The IRS will reverse your certification within 30 days of the date the tax debt is resolved and provide notification to the State Department as soon as practicable.
WHO CAN AFFORD TO BE WITHOUT THEIR PASSPORT FOR AT LEAST 30 DAYS?
Those who discover they have not been in compliance with their US tax obligations, including filing of income tax returns or FBAR reports, may avail themselves of the IRS Streamlined Offshore Procedure, which does not include the draconian FBAR penalty for Non-US Domiciliary's.
If You Face This Problem, You Should Consult with Experienced Tax Attorneys, As There Are Several Ways Taxpayers Can Avoid Having the IRS Request That the State Department Revoke Your Passport.
Want To Keep Your US Passport?
Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact us at:
Toll Free at 888-8TaxAid (888)882-9243.
Read more at: Tax Times blog