The recently passed federal highway and transportation spending bill, Fixing America’s Surface Transportation Act, often referred to as the FAST Act, includes a provision that allows the sharing of certain information between the Internal Revenue Service and the U.S. State Department. Yes, the federal government in its infinite wisdom has given the IRS the authority to share your sensitive tax information with yet another party, the U.S. State Department.
The U.S. State Department will now have the power to deny a U.S. passport application or renewal, as well as revoke a previously issued passport, to a “seriously delinquent taxpayer.” A seriously delinquent tax debt includes any outstanding debt for federal taxes in excess of $50,000, including interest and penalties, for which a notice of lien or a notice of levy has been filed. However, a tax debt would not be treated as seriously delinquent, among other reasons, if there is an installment agreement or offer in compromise or collection action has been suspended.
This gives the IRS another tool to collect back taxes. Taxpayers who have been ignoring their IRS tax problems now have an additional incentive to resolve those tax problems and become compliant. Taxpayers with outstanding tax debts in excess of $50,000 and who travel internationally will need to ACT FAST or else be subject to the FAST Act and lose their U.S. passport. The FAST Act does include some limited relief, such as permitting only return travel to the United States, for persons who have their passport revoked while traveling abroad.
If you know of someone who has IRS tax problems and would like a free consultation with an experienced IRS tax resolution specialist, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.