The IRS Can Restrict Travel for Tax Debt


          In 2015, Congress passed the FAST Act, part of this allows the IRS collect large Tax debts. This complex program involves cooperation between the IRS and the State Department regarding those who are classified as “seriously delinquent in tax debt”. This program called IRC Section 7345, started being administered in March 2017.
          Taxpayers who are certified by the IRS to be in this position, will have their names turned over to the State Department. They can have their Passports denied, limited, or revoked until they return to good standing with the IRS. This is particularly true if applying for or trying to renew a Passport. This is used as leverage for debt collection. Those who will be affected by this program are those who owe $50,000 or more and (1) have a lien filed with all ways of relief denied or (2) a levy issued.
          As with any IRS collection process, there will be letters sent clearly stating what is happening. In this case from the IRS and the State Department. Do not believe surprise phone calls or emails sent regarding matters like this. This program has just started, so some aspects remain unclear. However, if you find yourself “seriously delinquent in tax debt”, please seek the aid of a qualified Tax Professional to guide you to the best resolution.

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