Monday, December 21, 2015

Have An Unpaid Tax Bill? Your US Passport Is In Jeopardy of being Revoked in 2016!

On Tuesday, December 1, 2015 we posted Have An Unpaid Tax Bill? Your Passport Could Soon be Revoked!  where we discussed that a recent bill known as the  H.R. 22, Fixing America’s Surface Transportation Act (FAST Act)which It includes amendments to the tax code that would allow authorities to revoke or deny the passport of any US taxpayer who has unpaid taxes in excess of $50,000 or who have not obtained or won’t provide a Social Security number, has been approve by the conference committee.

The applicable provision in the FAST Act is entitled "Revocation or denial of passport in case of certain unpaid taxes (sec. 52101 of the Senate amendment, sec. 32102 of the House amendment, sec. 32101 of the conference agreement and secs. 6320 and 6331 and new secs. 7345 and 6103(k)(11) of the Internal Revenue Code)" 

Well the highway funding bill was signed by President Obama on December 4, 2015,  which now gives the US government the right to revoke or deny the passports of US persons who owe more than USD50,000 in federal taxes (including penalties and interest). The new provision is expected to become effective on January 1, 2016.

The new law adds a new Internal Revenue Code (section 7345) which authorizes the Treasury Secretary to certify, to the Secretary of State (Secretary), that a taxpayer has a "seriously delinquent tax debt'". A "seriously delinquent tax debt" is greater than USD50,000 and one for which the IRS has either filed a lien or levy. Upon receiving the certificate, the Secretary can deny, revoke, or limit the taxpayer's US passport. The notice must spell out that the taxpayer is entitled to file a lawsuit in the US Tax Court or a federal district court to challenge this certification.

All the existing remedies for addressing an IRS lien or levy continue to apply! Therefore, this new provision of denying a passport will not apply to taxpayers who have entered into installment agreements or offers-in-compromise, or who have requested collection due process hearings or innocent spouse relief.

US citizens living abroad should ensure that their IRS tax affairs are in order before December 31, 2015, in order to ensure that they do not have any issues with their US passport.
 Have A Tax Problem?

 Want To Keep Your US Passport?


Contact the Tax Lawyers at 

Marini & Associates, P.A.

for a FREE Tax Consultation
Toll Free at 888-8TaxAid (888)882-9243.


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