Fox partner Matthew D. Lee has published a client alert warning that individuals who owe more than $51,000 in back taxes are now at risk of losing their U.S. passports. This has arisen under a new law requiring the Internal Revenue Service to notify the State Department of taxpayers with “seriously delinquent tax debts.”
This month the IRS will begin the process of certifying delinquent taxpayers to the State Department, which is required by law to deny passport applications or renewals filed by such individuals, and in some instances revoke existing passports. The IRS estimates that 270,000 individuals currently meet the criteria for certification to the State Department, and expects to certify an initial group this month, with additional certifications to follow weekly throughout 2018.
At-risk individuals concerned about losing their passports must take immediate steps to address their outstanding tax liabilities, by either paying such debt in full or seeking to negotiate a collection alternative such as an installment agreement or offer-in-compromise.
You can read Matt’s full Alert on the Fox Rothschild website.