On July 17, 2018 we posted Don't Be 1 of the 362,000 Americans Waiting To Have Their Passports Revoked Because They Owe Back Taxes! where we discussed that the IRS issued Notice 2018-1 on January 16, 2018, which provides guidance for implementation of the new IRC 7345 and also discussed that the IRS webpage on Revocation or Denial of Passport in Case of Certain Unpaid Taxes contains the following alert:
The power to recommend passport revocation for serious tax defaulters was granted to the IRS under the Fixing America's Surface Transportation Act, signed into law in December 2015, but only brought into effect in February 2018. The Internal Revenue Service has stated it plans to use the power against US persons who owe more than USD51,000 in taxes and penalties.
However, first the IRS need to send the taxpayer either a Notice of Federal Tax Lien or a Notice of Intent to Levy. Taxpayers receiving either notice are entitled to appeal to a Collection Due Process hearing, to negotiate a resolution of this debt.
Second, the IRS can apply for a passport revocation or denial only if it first notifies the taxpayer of its intention, and allows 30 days for a response. It can go ahead with the application only if this request is ignored or not satisfactorily answered.
The IRS also uses Form CP508C - Notice of Certification of Your Seriously Delinquent Federal Tax Debt to the State Department advising the taxpayer that:
Even then, the taxpayer can halt the revocation by agreeing to pay the tax in instalments, or by offering a compromise. And in the last resort, where revocation is granted, the State Department will not actually execute it until 90 days after the grant, giving the taxpayer time to resolve it.
Payment Of Taxes
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Now IRS as indicated that at least 362,000 Americans have “seriously delinquent” overdue tax payments and will be denied passports or passport renewals if they do not pay the money they owe, The Wall Street Journal reports.
Now as of August, the US Internal Revenue Service had started action to revoke the passports or residence rights of at least 260,000 US individuals.
However, first the IRS need to send the taxpayer either a Notice of Federal Tax Lien or a Notice of Intent to Levy. Taxpayers receiving either notice are entitled to appeal to a Collection Due Process hearing, to negotiate a resolution of this debt.
Second, the IRS can apply for a passport revocation or denial only if it first notifies the taxpayer of its intention, and allows 30 days for a response. It can go ahead with the application only if this request is ignored or not satisfactorily answered.
The IRS also uses Form CP508C - Notice of Certification of Your Seriously Delinquent Federal Tax Debt to the State Department advising the taxpayer that:
We have certified to the State Department that your
tax debt is seriously delinquent.
We show that you still owe > $51,000.
This amount includes penalty and interest computed to
30 days from the date of this notice.
tax debt is seriously delinquent.
We show that you still owe > $51,000.
This amount includes penalty and interest computed to
30 days from the date of this notice.
Payment Of Taxes
If you can’t pay the full amount you owe, call 888 8TaxAid immediately to help you can make alternative payment arrangements such as an installment agreement or an offer in compromise to have your certification reversed. If you disagree with the tax amount or the certification was made in error, you should call 888 8TaxAid immediately! If you’ve already paid the tax debt, please send proof of that payment to the address on the Notice CP 508C.
If you recently filed your tax return for the current year and expect a refund, the IRS will apply the refund to the debt and if the refund is sufficient to satisfy your seriously delinquent tax debt, the account is considered fully paid.
Passport Status
If your U.S. passport application is denied or your U.S. passport is revoked, the State Department will notify you in writing. If you need your U.S. passport to keep your job, once your seriously delinquent tax debt is certified, you must fully pay the balance, or make an alternative payment arrangement to have your certification reversed.
Once You’ve Resolved Your Tax Problem With The IRS,
The IRS Will Reverse The Certification Within 30 Days Of Resolution Of The Issue And Provide Notification To The State Department As Soon As Practicable.
The IRS Will Reverse The Certification Within 30 Days Of Resolution Of The Issue And Provide Notification To The State Department As Soon As Practicable.
______________________
WHO CAN AFFORD TO BE WITHOUT THEIR PASSPORT FOR AT LEAST 30 DAYS?
Travel
If you’re leaving in a few days for international travel, need to resolve passport issues and have a pending application for a U.S. passport, you should call 888 8TaxAid immediately. If you already have a U.S. passport, you can use your passport until you’re notified by the State Department that it has been revoked.
If your passport is cancelled or revoked, after you’re certified, you must resolve the tax debt by paying the debt in full, making alternative payment arrangements or showing that the certification is erroneous.
The IRS will reverse your certification within 30 days of the date the tax debt is resolved and provide notification to the State Department as soon as practicable.
WHO CAN AFFORD TO BE WITHOUT THEIR PASSPORT FOR
AT LEAST 30 DAYS?
Those who discover they have not been in compliance with their US tax obligations, including filing of income tax returns or FBAR reports, may avail themselves of the IRS Streamlined Offshore Procedure, which does not include the draconian FBAR penalty for Non-US Domiciliary's.
If You Face This Problem, You Should Consult with Experienced Tax Attorneys, As There Are Several Ways Taxpayers Can Avoid Having the IRS Request That the State Department Revoke Your Passport.
Want To Keep Your US Passport?
Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation Contact us at:
Toll Free at 888-8TaxAid (888)882-9243.
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