Sunday, January 3, 2016

If You Owe Back Taxes, Your Passport Can Be Revoked

The Transportation Funding Act of 2015 has a unique provision.

Embedded deep within H.R. 22 is a provision that can cause taxpayers a bit of a headache.  Basically it says that the IRS can notify the Secretary of State if a taxpayer has an outstanding balance of more than $50,000, then the Secretary of State has broad authority to change the status of a taxpayer's passport, including revoking a taxpayer's passport.

There is additional language describing exceptions, which includes a payment agreement, etc..  But if the IRS has filed a lien and you are not making payments, you will probably not be able to travel outside of the US.

This could have some implications for some folks, causing some serious headaches.

By Doug Zandstra CPA EA
Certified Public Accountant
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI  49503616 970 3000
email doug@dougzandstra.com

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