Do you have upcoming travel plans?
If you owe significant tax debt, you may be in for a surprise. The State Department can revoke your passport if you owe a significant tax debt to the IRS. Therefore, taxpayers with tax debts and international travel plans should contact their CPA as soon as possible to protect their passport.
How Much Debt is Too Much?
The IRS will notify the State Department if a taxpayer has a seriously delinquent tax debt. As of March 2020, the amount of tax to be considered seriously delinquent is $53,000 or more. This amount is adjusted annually.
Once notified, the State Department may then deny or revoke passport applications and renewals and restrict international travel.
This can result in a crisis for anyone planning to travel internationally. This is especially true for those who cross the border with Mexico or Canada every day for work.
If You Owe Debt, Don’t Wait!
When a passport is denied or revoked, the taxpayer should petition the IRS for the action to be reversed. The normal processing time for these petitions is 30 days. However, expedited processing is available under certain circumstances.
Fortunately, the matter can usually be corrected if the taxpayer cooperates and is able to show a good-faith attempt to resolve their tax debt. For example, requesting an Offer in Compromise or an Installment Agreement is an example of a good-faith effort.
Working with the IRS is intimidating. Therefore, feel free to call our Atlanta accounting firm at 678-235-5460 to discuss your situation. We deal with the IRS so you do not have to.
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Founded by Gary Massey, Massey and Company CPA serves the needs of small businesses and individuals in Atlanta and throughout Georgia. The firm handles tax preparation, IRS controversy, tax debts, unfiled tax returns, bookkeeping and small business accounting. Offices are in the Buckhead – Sandy Springs neighborhood of Atlanta.