Tax Debt and Your Passport

 

Tax debt will begin to affect travel plans for those wishing to leave the United States this year.  The FAST (Fixing America’s Surface Transportation) Act, was signed in December 2015 and is being enforced beginning this month.  Anyone with “seriously delinquent tax debts” is subject to having their passport suspended, revoked, or their application/ renewal denied.  A seriously delinquent tax debt is considered for anyone with $51,000 or more in unpaid taxes, interest, and/or penalties.  It does not apply to anyone who is bankrupt, has been the victim of tax-related identity theft, resides within a federally declared disaster area, or has endured similar hardships.  Additionally, for anyone serving in combat with a serious tax debt, passport suspension is currently suspended.

If this applies to you there are several options available to consider.  You can pay the debt in full , pay under an approved payment plan agreement, or pay in full with an approved compromised offer.  

  • To request a payment plan agreement with the IRS, please complete Form 9465 which can be mailed with your tax return or bill.  An online payment agreement is also available if you prefer to complete online.

 

  • To determine if you qualify for a compromise offer, the IRS has additional information on their website.  The IRS will use your income and assets to determine your ability to pay.  Curious about whether you are a good fit?  Check out the Offer in Compromise Pre-Qualifier link ahead of time!