Tim’s Tax News on the Tenth – May 2021

Over three years ago the IRS began to warn the public that taxpayers may not be able to renew a current passport or obtain a new passport if they owe federal taxes. The IRS cautioned taxpayers to avoid delays in travel plans, taxpayers need to take prompt action to resolve their outstanding tax issues.

In January 2018, the IRS began implementing procedures targeting individuals with delinquent tax debt of over $52,000.00. These new procedures required the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt. The law then requires the State Department to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit ability to travel outside the United States.

When the IRS certifies to the State Department that a taxpayer has a seriously delinquent tax debt, the State Department will hold the taxpayer’s application for 90 days to allow them to resolve the debt. Taxpayers can resolve the debt by full payment, setting up a payment plan, or other IRS-approved payment alternatives. Taxpayers should not delay because some resolutions take longer than others to implement and be approved by the Service. Once a matter is resolved, the IRS will reverse the taxpayer’s certification within thirty days. That will then lead the State Department to remove the certification from the taxpayer’s record, so their passport will not be at risk under this program.

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 29 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Lavelle Law, Ltd. is registered with the Illinois Department of Financial and Professional Regulation as an approved continuing education provider for CPE for CPAs and Enrolled Agents. If your organization is seeking CPE courses in the area of Business Law, Innocent Spouse Relief, IRS Collections, Tax Scams (including ID Theft) or other areas in tax law that can be taught at your office, please contact me at thughes@lavellelaw.com