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Want to Keep your Passport? Pay Your Taxes by Adam Slavin, CPA


Posted on August 29, 2019 by Adam Slavin

Taxpayers with “seriously delinquent” unpaid federal income tax debt in excess of $52,000 risk losing their passports and any plans to travel abroad for the remainder of the year.

Under the Fixing America’s Surface Transportation (FAST) Act of 2015, the State Department, upon notice from the IRS, is required to deny passport applications and passport renewals to  individuals who have unpaid tax liabilities and for whom a federal tax lien has been filed. Excluded from this treatment are taxpayers in the midst of bankruptcy proceeding, victims of tax-related identity theft, individuals located in federally declared disaster areas and taxpayers with a pending a request with the IRS to settle the debt.

The IRS informs taxpayers of their delinquency by mailing to them Notice CP508C, which provides steps taxpayers can take to resolve their debt, which include taking the following measures:

In addition, when the IRS intends to revoke a passport, it will mail Letter 6152 to the affected taxpayers and give them an opportunity to resolve their debt within 30 days or receiving a letter. In general, the IRS will not recommend revoking a taxpayer’s passport if the taxpayer is making a good-faith attempt to resolve their tax debts.

Taxpayers with imminent travel plans whose passport applications have been denied or whose passports have been revoked may be able to settle their debt and receive expedited resolution when they contact the IRS and demonstrate proof of travel within the next 45 days.

The accountants and advisors with Berkowitz Pollack Brant help individuals and businesses maintain tax efficiency while meet their U.S. and foreign tax reporting responsibilities.

About the Author: Adam Slavin, CPA, is a senior manager with Berkowitz Pollack Brant’s Tax Services practices, where he provides tax planning and consulting services to high-net-worth individuals and closely held business.  He can be reached at the CPA firm’s Boca Raton, Fla., office at (561) 361-2000 or via email at info@bpbcpa.com.