Section 7345 of the tax code is generally referenced for the criminal tax cases. There is however a new section that involves your passport. While the IRS can’t exactly swipe your passport from you, they do have the ability to send a certification to the State Department declaring you unfit for passport renewal. This can only happen if you owe a serious amount of back taxes to the IRS. Usually defined as $50,000 or more, being seriously tax delinquent can put a real damper on your travel plans.
Now, being this much in debt to the IRS shouldn’t come as a surprise to you. The IRS will notify you of any money you owe to them, and it’s imperative that you respond. While you’re not going to get out of the IRS tax debt you owe, if you respond in a timely manner, the harshest penalty may not be bestowed. You can even ask for an extension from the IRS, and if you meet certain requirements, they will grant it.
It’s also really important to keep track of what you paid, along with the contact you’ve had with the IRS. Keeping documented evidence of tax notices, payments, extensions, etc. will help you in the long run. It can even prevent you from having to pay penalties.
Take a look at the IRS official website here. The IRS being able to revoke passports through The State Department started this year, January 2018. Keep in mind that the $50,000 of seriously delinquent tax debt includes penalties and other fees. The website also lists the cases where owing money to the IRS is not considered serious delinquent tax debt. Before taking away your passport, the IRS will give you 90 days to pay the debt in full, resolve any issues with the certification, or enter into a payment plan with the IRS.
If you have serious tax debt and need help dealing with the IRS, contact one of our IRS Tax Consultants here at Anderson Bradshaw Tax Consulting for a Free 30 min consultation. Our tax experts are well-versed in all IRS tax related matters and can help settle your tax debt at a fraction of what you owe. Call 877.550.3911 or fill out a form here.