Can You Get A Passport If You Owe Federal Taxes

Can You Get A Passport If You Owe Federal Taxes – The Noonan Notes blog is written by a team of tax attorneys at Hodgson Russ, and is directed by Tim Noonan. Noonan’s Notes blog provides regular analysis and commentary on developments in the New York world and international tax law. Noonan’s Notes blog is a 2017. Winner of CreditDonkey’s Best Tax Blog Award.

If you fall behind with the Internal Revenue Service, you have a new problem to worry about that’s keeping you up at night. In addition to penalties, interest, fines, and fees, the State Department may soon revoke US passports under a new federal law that took effect in 2015. December 4

Can You Get A Passport If You Owe Federal Taxes

Congress passed the Fix America’s Surface Transportation Act (FAST Act) to fix roads, bridges, railroads, and transportation systems. But the 490-page FAST Act, which you can find here, is a provision that amends the Internal Revenue Code to include a new section 7345 that allows for the removal or denial of passports for “serious violations” and unpaid taxes.

Usa Passport Ultimate Guide With Frequently Asked Questions

Under the new law, the State Department will revoke or deny the passport of anyone the IRS determines has delinquent tax liability. A delinquent tax liability is defined as an unpaid, legally assessed federal tax liability that exceeds $50,000 and is already subject to federal tax liability or assessment. In other words, you no longer have control and are owed tens of thousands of dollars.

However, there are four important things: protect your passport from cancellation or rejection if you pay your federal taxes on time under the installment plan; if you pay on time under the contract; if you have a debt collection application pending; and finally, if you have an innocent wife’s debt pending.

In other words, this new law will cause many taxpayers to face cancellation or denial in the near future. Although the $50,000 and above limit is tied to inflation, it is actually a low limit. After receiving interest and penalties, it can be easy for a taxpayer to pay more than $50,000 (passport holders than US residents receive important information) can cause all kinds of problems.

Not only will some taxpayers find themselves unable to take essential trips outside the United States, but many Americans may be stuck overseas, at least temporarily, because a their passports have been cancelled. If necessary, the State Department can still issue passports for emergency or humanitarian reasons. Additionally, the IRS is required to notify any affected parties, and taxpayers are given the right to go to court.

Your Passport Could Be Cancelled If You Owe Irs

It is worth noting that some states have similar laws that allow taxpayers to revoke their driver’s licenses for nonpayment. It should be noted that in 2013 New York implemented a driver’s license suspension program. If a taxpayer owes more than $10,000 in unpaid taxes under this program, the Department of Motor Vehicles, in cooperation with the Department of Taxation and Revenue, will suspend their New York driving license. . We wrote about it here.

After a license suspension, the only thing that can be done at this time is to apply for a limited use license, which allows transportation to and from work or from child care and health care services, or is to agree to a payment plan for recovery. Your normal license. In fact, most taxpayers have a payment plan. In fact, the New York program was very successful in raising funds: $278 million. USD since the enactment of the law in 2013. The federal passport program will also bring more money to the federal bank.

We expect the Ministry of Finance to issue regulations explaining this new law. Congress just hit a big hammer to crack down on tax evaders. Although this is certainly possible to increase their income quickly, reaching the scale of this plan can be a problem. In fact, the impact of many taxpayers can be dire. We can easily imagine a New Yorker who doesn’t pay taxes finding out that New York has revoked his driver’s license and the US has revoked his passport. This can make business and “normal” life difficult; In fact, that’s the point of these programs. While it may be tempting to bury your head in the possibility of such a situation in the near future, it is better to consult a tax professional who can help you. hands on workable solutions.

Even as the risk of tax evasion continues to rise, we remind you that travel is good for the soul and encourage you to take action to protect your right to travel. So we leave you with a split thought:

Is A Temporary Passport Your Best Way?

“Travel destroys prejudices, despair and imagination, so many of us seek it out. . – Mark Twain,

Hodgson Russ attorneys support the US legal aspects of business worldwide. We practice in all areas of law and employ multidisciplinary teams to meet the complex needs of our clients, including public and private companies, government agencies, non-profit organizations and individuals. ‘one. If you have a “delinquent tax debt,” the IRS now has the authority to report such debt to state officials. In turn, the Department of State may deny your passport application or revoke your current passport. If you are abroad and your passport is denied or your passport is revoked, the Department of State can issue you a limited passport that is only available for immediate travel to the United States.

Your debt to the government must be more than $50,000 to be considered a felony. Even if your debt is over $50,000, your passport status will not be affected if you have an agreement with the IRS to pay the debt. This highlights the fact that if you pay taxes to the government, you should not ignore the situation. A payment agreement is available from the IRS. Depending on how much you owe, you can set up a monthly payment through the IRS website or with a quick phone call.

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What Can Stop You From Getting A Passport

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Any cookies that may not be essential for the site to function and are used to collect users’ personal data through surveys, advertisements or other embedded content are called non-persistent cookies. important. User consent is required before using these cookies on your website. Today, Phil Hwang, managing tax attorney at Optima Tax Relief, explains how tax relief can affect your travel plans, including renewing your passport or getting a passport for the first time.

You may be wondering about your passport and taxes. The IRS works with state departments to ensure that people with serious violations cannot leave the country. Actions can include refusing to apply for a passport, refusing to renew a passport or even revoking a passport.

Irs Says

So what is a serious startup tax liability? This amount may change each year, but in 2023 a tax balance of $59,000 or more is considered a serious violation. This amount includes interest and late fees.

If your passport is canceled or your application for a passport or travel extension is rejected, you will need to pay your taxes to get your travel rights back. To do this, you must do the following:

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