How To Avoid Passport Denial

The IRS is already one of the most successful collection agencies in the world. The Fixing America’s Surface Transportation Act (FAST Act) of 2015, added another tool: passport revocation and denial.

At Levins Tax Law, our founding tax attorney has been resolving tax collection matters for more than four decades. We can quickly assess your unique situation and provide tailored legal advice.

When Will The IRS Certify A Taxpayer To The State Department

It has taken a number of years for the IRS to develop regulations and coordinate with the state department. Now the IRS, has started identifying taxpayers who have seriously delinquent tax debt (back taxes, penalties and interest of more than an inflation-adjusted $50,000 — $51,000 in 2018). It started certifying taxpayers to the State Department and will soon complete the process.

Currently, the State Department has not yet revoked any passports. It becomes an issue when a taxpayer applies for a passport or needs to renew a passport. These applications will be denied if a taxpayer’s name is on the list.

Two ways to avoid certification include:

• Negotiating an installment agreement and making timely payments
• Requesting a Collection Due Process hearing

An installment agreement pending bankruptcy or submission of an offer in compromise may also stall certification.

If you reside between the U.K. and U.S. or travel for international business, it is crucial to stay off the list and avoid an emergency situation. The process to get off the list could take some time and cause scheduling difficulties. For more information about the detail of the program, please read our summer 2018 blog post.

Get Up-To-Date Tax Law Advice

It not certain what issues might exist with the new passport denial process. Working with an experienced tax attorney is the best way to strategize options that avoid travel restrictions.

Speak with our Boston tax lawyer, email or call 508-202-9800. We have offices in Framingham, minutes from the Massachusetts Turnpike, and in Boston.