You may have trouble obtaining or renewing a passport if you owe federal taxes. But fear not, we have solutions. Pull up a chair for five minutes; let’s review the issue.
IRS Can Deny or Suspend Your Passport?
The Fixing America’s Surface Transportation (FAST) Act includes a provision that allows the federal government to deny or suspend the passports of taxpayers with “seriously delinquent tax debts.”
People with more than $52,000 in tax debt can have their passport applications denied, and individuals with valid passports may have theirs revoked. The IRS sends Notice CP508C, which explains how to resolve debts and get passports reinstated, to taxpayers in this category.
Passport Suspension Solutions
Has the State Department suspended your passport over unpaid taxes? To resolve the issue, affected parties must do one of the following:
- Pay the debt in full;
- Arrange a settlement offer with the IRS;
- Arrange a payment or collection plan with the IRS;
- Prove “innocent spouse relief” status; (Link)
Common Unpaid Taxes Relief Programs
Form 9465 is what you must fill out to establish a payment plan with the IRS. Some people can get an Offer in Compromise where they pay less than the full amount owed to clear the debt. The likelihood of securing the latter increases dramatically when you work with a tax attorney. Moreover, people who enlist lawyers typically pay less overall — and that includes attorney fees!
The IRS won’t suspend the passports of people who are: entangled in bankruptcy proceedings, deceased, the victim of tax-related identity theft, located in a federally declared disaster area, involved in negotiations with IRS, militarily serving in combat zones. Additionally, people working with the Taxpayer Advocate Service (TAS) are currently exempt from passport suspensions.
Did the IRS Suspend Your Passport? We Can Help.
Did you receive Notice CP508C? Has the State Department suspended your passport over unpaid taxes? Don’t worry, there are ways to solve the problem, and we’ve successfully walked people through the process.
To begin, the State Department holds passport revocation applications submitted by the IRS for 90 days. This grace period gives people an opportunity to work out a solution, which can be as simple as establishing a payment plan. And once you reach an agreement, the suspension judgment will be lifted within 30 days — sooner for those with imminent travel plans.
Working with a tax lawyer helps! We know exactly what to say and what not to say, we understand the bureaucratic maze, we’ve built the connections, all of which increases your chance of securing the desired outcome.
Let’s start talking about solutions. Get in touch today.
