January 29, 2018

 

The State Department may deny a passport application due to a seriously delinquent tax debt. 

 

As a consequence of implementing the legislated in December of 2017 Fixing the America’s Surface Transportation (FAST) Act, the Internal Revenue Service is commencing to notify the U.S. State Department of cases of seriously delinquent tax debt.  This category of delinquency is normally ascribed to a total debt of at least $51,000.  The debt must be a subject of a lien for which the period of challenge has expired or of an administrative tax levy. The provisions of the Act also mandate the State Department to deny such individuals their passport application or passport renewal request, as well as, in some cases, to revoke a still valid passport.   [IRS Notice 2018-1]     

 

IMPORTANT DISCLOSURES

 

The presented here information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

 

The information contained herein is of a general nature and based on authorities that are subject to change.  Moreover, the information is presented here for educational purposes and is not specific to any individual’s personal circumstances.  As such, this information should not be used for the purpose of avoiding penalties that may be imposed by law.  A determination as to how your specific circumstances may relate to the presented material should be made by means of a consultation with your tax adviser.

Cezary Tchorznicki, CPA LLC does not provide legal or investment advice.