Having substantial unpaid tax debt can weigh on your mind, and the stress can even impact your day-to-day life. However, if you want to travel on an international vacation to get away from your everyday stresses for a week, you may have even bigger concerns courtesy of the Internal Revenue Service (IRS). In recent years, IRC Section 7345F passed, which allowed for the revocation or denial of a United States passport for individuals with significant unpaid tax bills. In 2018, the IRS issued direction to the State Department to enact this method of tax enforcement.
The new law will not affect everyone with past-due taxes. Instead, the following must be true for your passport to be in jeopardy:
- You owe more than $50,000 in legally-enforceable unpaid taxes (Title 26 liabilities only, as this does not apply to FBAR penalties or child support collections)
- The IRS filed a notice of a tax lien or issued a tax levy
- All administrative remedies have lapsed or been exhausted
If the above circumstances apply to your situation, the IRS will notify the State Department of your certified debt. Then, the State Department can do any of the following:
- Deny an application for your first passport
- Deny an application to renew your passport
- Revoke or restrict your current passport
The IRS must notify you when it certifies your tax debt to the State Department, and you should take action immediately to protect your passport. You have repayment options, so you should not ignore the issue if you cannot pay the debt in full. A tax lawyer in San Francisco can help.
Contact Our Tax Defense Lawyers in San Francisco Right Away
At Diosdi Ching & Liu, LLP, our San Francisco tax attorneys help clients facing the consequences of unpaid taxes. Call 415.318.3990 or contact us online to learn about your options today.