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Passports and delinquent taxes

On Behalf of | Mar 1, 2019 | IRS Issues

A warning has been issued by the Internal Revenue Service that applies to taxpayers residing in Georgia and around the country. In January 2018, the IRS implemented the Fixing America’s Surface Transportation (FAST) Act which, among other things, provides that people must pay their back taxes if they plan to travel abroad. Otherwise, they may experience issues renewing their passports or obtaining new ones.

According to the regulation, the IRS must let State Department officials know the identities of delinquent taxpayers who owe at least $52,000 in back taxes. In accordance with this law, the State Department must deny passport applications and passport renewals submitted by them. In addition, these issues may cause delinquent taxpayers to have their passports revoked.

The IRS currently issues Notice CP508C to taxpayers who owe a minimum of $52,000. The official notice lets a taxpayer know how to go about resolving a tax-related debt. A taxpayer can call the IRS to set up a plan for resolving the debt. The taxpayer then needs to file Form 9465. The IRS will remove the negative certification from the records after a taxpayer makes arrangements to pay off the debt. However, the taxpayer may need to wait 30 days for the removal of the certification. During this period, the State Department will also delete the certification. Taxpayers who have experienced hardships or filed for bankruptcy are exempt from the certification.

This is just one of the many weapons that the IRS has at its disposal when dealing with sizable delinquent accounts. People who receive these types of notices might find it advisable to discuss their situation with an experienced tax attorney.