If You Owe Taxes, You may Not be Able to Renew Your US Passport

On Wednesday, February 27, the IRS reiterated its warning that individual taxpayers who owe $52,000 or more in U.S. Federal taxes may not be able to renew a current passport or obtain a new passport.  In addition, a taxpayer with a currently valid passport may have the passport revoked or his or her ability to travel outside the U.S. limited.
In January of 2018, the IRS began implementing provisions of the Fixing America’s Surface Transportation (FAST) Act.  The FAST Act requires the IRS to notify the State Department of individual taxpayers who the IRS has certified as owing a seriously delinquent tax debt of $52,000 or more.  The law also requires the State Department to deny the passport renewal or new passport application of such taxpayers and allows the State Department to revoke a currently valid passport or limit the ability of such taxpayers to travel outside the United States.  A taxpayer who the IRS certifies to the State Department as owing a seriously delinquent tax debt will receive a Notice CP508C from the IRS.
Before denying a passport renewal or new passport application, the State Department will provide the taxpayer with 90 days to resolve any erroneous certification issues, make full payment of the tax due, or enter into a satisfactory payment arrangement with the IRS.

Taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt by

  • Paying the tax debt in full,
  • Timely paying the tax debt under an approved installment agreement,
  • Timely paying the tax debt under an accepted offer in compromise,
  • Timely paying the tax debt under the terms of a settlement agreement with the Department of Justice,
  • Having requested or have a pending collection due process appeal with a levy, or
  • Having collection suspended because the taxpayer has made an innocent spouse election or requested innocent spouse relief.

MasAmerica is the smart choice for filing your US Taxes. Contact us for additional information or to find out how we can help you if you have a U.S. Federal tax debt of $52,000 or more or have received a Notice CP508C, please contact our office.

The aforesaid should not be regarded as legal advice. It is advisable to consult with the MasAmarika team before any action. The service is provided by a professional team, fluent in English and Hebrew, and includes attorneys and accountants with American licenses.

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