Imagine having your passport revoked for failing to pay your federal income taxes. As surprising as it sounds, Congress granted the IRS the right to do just that in 2015.
Did the IRS Hit the Right Pressure Point?
So far, this method has proven to be somewhat successful. According to the Wall Street Journal, at least one person has paid $1 million in overdue taxes to avoid this penalty, and at least 220 people have paid a total of $11.5 million to avoid this fate. In addition, 14,000 people have begun the process of creating an installment agreement to pay back their taxes.
And in case you are wondering what happens if you are outside of the country already, the IRS has kindly allowed re-entry into the United States with a limited passport, presumably to come settle tax debt. The IRS has carved out a few other exceptions from this new rule, most notably for:
- Financially distressed taxpayers
- Individuals who have applied for or agreed to a payment plan to the IRS
- People who are bankrupt
- Victims of tax-related identity theft
- People living in a federally-declared disaster area
Am I Already Blacklisted?
If you owe back taxes you may wondering if your name has already been reported by the IRS to the State Department. The IRS is required to inform you in writing if they are requesting action be taken against your passport at the same time they make that request to the State Department. You should receive written notice so long as the IRS knows how to find you with a letter.
If you are concerned that you owe back taxes and have not been properly notified, or if you are looking for help to be rid of your tax debt, contact a tax professional today. Your future travel plans may depend on it.
Related Resources:
- Find Business & Commercial Lawyers Near You (FindLaw’s Lawyer Directory)
- The IRS Collection Process (FindLaw’s Learn About the Law)
- When Are Tax Attorneys Worth the Cost? (FindLaw’s Law and Daily Life)
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