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Subject: [Hangout-NYLXS] irs and passports - 50K is nothing
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Another Travel Ban: IRS Moves To Revoke Passports For Unpaid Taxes
Robert W. Wood ,
President Trump's executive order on travel may be generating big
protests, but an IRS missive on travel and passports may not go down too
well either. More than a year ago, in H.R.22, Congress gave the IRS a
new weapon to collect taxes. Tax code Section 7345 is labeled,
=E2=80=9CRevocation or Denial of Passport in Case of Certain Tax Delinquenc=
The law isn't limited to criminal tax cases, or even cases where the IRS
thinks you are trying to flee. The idea of the law is to use travel as a
way to enforce tax collections. It was proposed and rejected in 2012.
But by late 2015, Congress passed it and President Obama signed it.
Now, over a year later, the IRS has finally released new details on its
website. If you have seriously delinquent tax debt, IRS can notify the
State Department. The State Department generally will not issue or renew
a passport after receiving certification from the IRS. The IRS has not
yet started certifying tax debt to the State Department. The IRS says
certifications will begin in early 2017, and the IRS website will be
updated to indicate when this process has been implemented.
Here is the new information from the IRS. Seriously delinquent tax debt
is an individual's unpaid, legally enforceable federal tax debt totaling
more than $50,000 (including interest and penalties, but subject to an
inflation adjustment) for which:
A notice of federal tax lien has been filed and all administrative
remedies under IRC =C2=A7 6320 have lapsed or been exhausted or
A levy has been issued
Some tax debt is not included in determining seriously delinquent tax
debt even if it meets the above criteria. It includes tax debt:
Being paid in a timely manner under an installment agreement
entered into with the IRS
Being paid in a timely manner under an offer in compromise accepted
by the IRS or a settlement agreement entered into with the Justice
For which a collection due process hearing is timely requested in
connection with a levy to collect the debt
For which collection has been suspended because a request for
innocent spouse relief under IRC Section 6015 has been made
Before denying a passport, the State Department will hold your
application for 90 days to allow you to:
Resolve any erroneous certification issues
Make full payment of the tax debt
Enter into a satisfactory payment alternative with the IRS
There is no grace period for resolving the debt before the State
Department revokes a passport.
Taxpayer Notification. The IRS is required to notify you in writing at
the time the IRS certifies seriously delinquent tax debt to the State
Department. The IRS is also required to notify you in writing at the
time it reverses certification. The IRS will send written notice by
regular mail to your last known address.
Reversal Of Certification. The IRS will notify the State Department of
the reversal of the certification when:
The tax debt is fully satisfied or becomes legally unenforceable.
The tax debt is no longer seriously delinquent.
The certification is erroneous.
The IRS will provide notice as soon as practicable if the certification
is erroneous. The IRS will provide notice within 30 days of the date the
debt is fully satisfied, becomes legally unenforceable or ceases to be
seriously delinquent tax debt. A previously certified debt is no longer
seriously delinquent when:
You and the IRS enter into an installment agreement allowing you to
pay the debt over time.
The IRS accepts an offer in compromise to satisfy the debt.
The Justice Department enters into a settlement agreement to satisfy
Collection is suspended because you request innocent spouse relief
under IRC Section 6015.
You make a timely request for a collection due process hearing in
connection with a levy to collect the debt.
The IRS will not reverse certification where a taxpayer requests a
collection due process hearing or innocent spouse relief on a debt that
is not the basis of the certification. Also, the IRS will not reverse
the certification because the taxpayer pays the debt below $50,000.
Judicial Review. If the IRS certified your debt to the State Department,
you can file suit in the U.S. Tax Court or a U.S. District Court to have
the court determine whether the certification is erroneous, or the IRS
failed to reverse the certification when it was required to do so. If
the court determines the certification is erroneous or should be
reversed, it can order reversal of the certification.
IRC Section 7345 does not provide the court authority to release a lien
or levy or award money damages in a suit to determine whether a
certification is erroneous. You are not required to file an
administrative claim or otherwise contact the IRS to resolve the
erroneous certification issue before filing suit in the U.S. Tax Court
or a U.S. District Court.
Payment of Taxes. If you can=E2=80=99t pay the full amount you owe, you can=
alternative payment arrangements such as an installment agreement or an
offer in compromise and still keep your U.S. passport. If you disagree
with the tax amount or the certification was made in error, you should
contact the phone number listed on Notice CP 508C. If you=E2=80=99ve already
paid the tax debt, please send proof of that payment to the address on
the Notice CP 508C. If you recently filed your tax return for the
current year and expect a refund , the IRS will apply the refund to the
debt and if the refund is sufficient to satisfy your seriously
delinquent tax debt, the account is considered fully paid.
Passport Status. If you need to verify whether your U.S. passport has
been cancelled or revoked, you should contact the State Department by
calling the National Passport Information Center at 877-487-2778. If you
need your U.S. passport to keep your job, once your seriously delinquent
tax debt is certified, you must fully pay the balance, or make an
alternative payment arrangement to keep your passport. Once you=E2=80=99ve
resolved your tax problem with the IRS, the IRS will reverse the
certification within 30 days of resolution of the issue.
Travel. If you=E2=80=99re leaving in a few days for international travel and
need to resolve passport issues, you should call the phone number listed
on Notice CP 508C. If you already have a U.S. passport, you can use your
passport until you=E2=80=99re notified by the State Department that it=E2=
action to revoke or limit your passport. If the Secretary of State
decides to revoke a passport, the Secretary of State, before making the
Limit a previously issued passport only for return travel to the
United States; or
Issue a limited passport that only permits return travel to the
If your passport is cancelled or revoked, after you=E2=80=99re certified, y=
must resolve the tax debt by paying the debt in full, making alternative
payment arrangements or showing that the certification is erroneous. The
IRS will notify the State Department of the reversal of your
certification within 30 days of the date the tax debt is resolved.
For alerts to future tax articles, email me at Wood-at-WoodLLP.com. This
article is not legal advice.
So many immigrant groups have swept through our town
that Brooklyn, like Atlantis, reaches mythological
proportions in the mind of the world - RI Safir 1998
DRM is THEFT - We are the STAKEHOLDERS - RI Safir 2002
http://www.nylxs.com - Leadership Development in Free Software
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Being so tracked is for FARM ANIMALS and and extermination camps,
but incompatible with living as a free human being. -RI Safir 2013
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