Updated: Sep 3, 2019
While writing this article a client contacted me panicked. He was renewing his passport to travel out of the country soon, and the application contained a question regarding unpaid taxes. I informed him the IRS implemented another enforcement tool for seriously delinquent taxpayers by sending certifications regarding unpaid debt to the State Department to revoke or not issue you a passport. I assured him that he did not fit the criteria outlined:
The IRS defines unpaid federal taxes over $52,000 including interest and penalties where:
A tax lien has been issued
A levy has been filed
However, you are not at risk if you are in an approved installment agreement, Offer in Compromise, or other legal remediation. You will also not be affected if you are in bankruptcy, currently not collectible status, pending Offer in Compromise, pending installment agreement, reside in federally declared disaster area, or an identity theft victim.
Further, if you are currently out of the country-the State Department will allow validity for you to return to the United States.
Here is what to expect if you meet the criteria:
The IRS will send you a notice before your case is referred to State Department.
You will then have the opportunity to contact the IRS and provide a solution.
The IRS will reverse certification if you meet certain qualifications.
Costen Tax Group has handled hundreds of IRS collection cases and we can help you resolve your tax situation. Contact us at 770-575-9737 for a free consultation.
Important Tax Returns Due Date September 15, 2019
S Corporation Tax Return
Partnership Tax Return
3rd Quarter Estimated Tax Payment