How Tax Debt Can Cause Travel Problems

How Tax Debt Can Cause Travel Problems

During the Obama Administration in 2015, a transportation bill was passed called the “Fixing America’s Surface Transpostation (FAST) Act. The act was designed to provide much needed funding for transportation infrastructure. It was to help expedite financing and grants, support innovative technologies and pilot programs in the transporation arena as well as encourage private investment.

What many people don’t know is that the FAST Act could impact was your ability to travel if you have outstanding, unresolved tax liabilities.

Under this Act, persons with seriously delinquent tax debt could result in the IRS sending certification of that debt to the State Department. Upon receiving certification, the State Department will deny your passpost application and can revoke your current passport keeping you from traveling out of the country.

Tax Debt Problems

The IRS considers seriously delinquent tax debt to be unpaid, legally enforceable federal tax debt totaling more than $51,000, including the interest and penalties where;

  • A notice of federal tax lien has been filed and all administrative options have been exhausted or a levy has been issued.

Tax debt that is not considered seriously delinquent tax debt is:

  • Debt paid an active and current IRS installment agreement
  • Debt paid under an accepted IRS Offer in Compromise
  • Debt for which there is a hearing scheduled for debt collection
  • Debt for which collection has been suspended by a request for innocent spouse relief.

Your passport is not at risk if:

  • You have filed bankruptcy
  • You are victim of tax-related identity theft
  • You are currently in a CNC (currently not collectible) status with the IRS
  • You have a pending payment agreement
  • or if the IRS has made an adjustment that settles your debt in full.

If the State Department has received debt certification, they will hold your passport application for 90 days before denying it giving you a chance to either resolve the certification issues, pay your debt in full or come up with a payment agreement that satisfies the IRS.

Long story short, paying taxes is your civic responsibility.

If you fall behind do not ignore the issue as it may affect your lifestyle in ways you may not have thought of. While it is your responsibility, we believe it is also your right to legally pay as little tax as possible. If you have tax debt in access of $10,000 it is highly suggested that you consult with a professional tax resolution company for advice and guidance in resolving your tax debt issues.

Millennia Tax Relief is a group of tax professionals whose mission is to help taxpayers get a fair shake when dealing with IRS and State taxing aganecies. Give us a call at 800-697-7702 for a free consultation.

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