Can an IRS tax debt cause a problem with the issuing or renewing of your passport?

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Can an IRS tax debt cause a problem with the issuing or renewing of your passport?

Post by Rajneet » Mon Jan 27, 2020 8:56 pm

The answer is YES!!

Internal Revenue Code, (IRC) 7345, allows the IRS to notify the State Department of all taxpayers with a serious delinquency. The state department, upon the notice of a serious delinquency, can prevent an issuance of a new passport or the renewal your current passport.

The IRS considers it a serious delinquency if a taxpayer owes the IRS over $50,000.00. The amount has been adjusted, for inflation for 2019, to $52,000.00. The $52,000.00 is the combination of interest, penalties and the original tax owed for the tax period. The IRS has also either filed a Notice of Federal Tax Lien, or at any time, has issued a levy to collection the debt.

How can you fix the serious delinquency with the IRS or no longer be considered seriously delinquent?

1. The taxpayer pays the debt in full.

2. The taxpayer enters into an Installment Agreement with the IRS for the debt owed to the IRS.

3. Collection is suspended on the request of the taxpayer either through the hardship status or innocent spouse relief.

4. The taxpayer makes a timely request for the collection due process hearing regarding the lien/levy placed to collect the debt.

5. The IRS accepted the offer in compromise to satisfy the debt.

The IRS will reverse the certification within 30 days once the debt has been satisfied, the tax debt is no longer seriously delinquent and/or certification was erroneous.

It is recommended that if you owe the IRS or are facing a serious delinquency with the IRS, you should seek the help of a tax professional. A tax professional is aware of all the current tax laws, loop holes and understands the system to get you the help you need based on your circumstances. At LifeBack Tax, we strive daily to do the best that we can to help our clients and help reduce the burden of the IRS off their shoulders.

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