Everyone knows that the logistics of international travel are complicated. From packing enough for your time away, to a long flight overseas, to the customs process and your passport - everything has to work in sync for your trip to be a success. However, if you have unpaid taxes, your trip overseas could get a little more complicated.
The IRS recently announced that individuals and business owners with more than $50,000 in unpaid taxes could have their passports revoked or denied by the U.S. State Department.
The ruling affects more than criminal cases
The agencies will begin communicating about tax debts beginning this month, just as taxpayers prepare for another filing season. You can be affected by this ruling even if you aren't facing charges of a tax crime. According to Forbes, any taxpayer who has been notified of a tax debt could have their passport revoked or denied.
The number of people this action will affect is unclear currently, but according to a study published in 2013 by George Washington University, approximately 12 million people have tax debts of more than $25,000, an amount that can quickly balloon to $50,000 as interest compounds.
While the thought of having your passport denied with minimal due process is daunting, you do have options in resolving your tax debt. First, the IRS is required to notify you with a Notice CP 508C if your passport is at stake due to tax debts. Then, we recommend that you seek help from an attorney when responding to an inquiry from the IRS.
Your options in dealing with passport revocation
The IRS has outlined ways in which taxpayers can restore their passport. Goldburd McCone LLP will work with you to resolve your tax debt in this effort including:
· Disputing the claim
· Helping negotiate a settlement and payment plan
· Requesting innocent spouse relief
The IRS may take up to 30 days to reverse the revocation or denial of your passport after paying your debts. If you have unpaid taxes, now is the time to have a plan to resolve your debt and protect the passport that is essential to your business and lifestyle.
Don't wait for the IRS to take action against you. Instead, contact the attorneys at Goldburd McCone LLP.