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Understanding IRS Passport Denial: The FAST Act Explained
In a bid to streamline tax collections and ensure compliance, the IRS can now affect international travel plans for Americans. The Fixing America’s Surface Transportation Act, commonly known as the FAST Act, empowers the State Department to deny or revoke the passports of individuals with seriously delinquent tax debts. Specifically, if you owe the IRS more than $51,000, your ability to travel can come into jeopardy. The act was implemented to encourage compliance among taxpayers who owe significant debts to the IRS.
Who Is Affected by Passport Issues?
It is crucial to note that not everyone with unpaid taxes faces passport denial. There are several exemptions for taxpayers under conditions such as harboring an active IRS installment agreement, undergoing a due process levy appeal, or seeking Innocent Spouse Relief. Military personnel in combat zones, residents of federally declared disaster areas, and individuals undergoing bankruptcy proceedings are also protected from passport issues. Understanding these exemptions can help taxpayers navigate their obligations without jeopardizing their right to travel.
The Process of Passport Denial and What It Means for Taxpayers
The process begins when a taxpayer’s tax debt is certified by the IRS, notably after a notification sent via Notice CP508C. This communication serves as a final warning that your travel plans may be halted. Once the IRS has flagged your status, you have a limited window of 90 days to resolve your debt. Ignoring this notice can lead to a serious disruption, where the IRS not only denies new passports but can also revoke current ones.
Resolving Tax Debt: Options at Your Disposal
For those facing tax debts that threaten their passport eligibility, acting promptly is vital. Options to resolve IRS debts include:
- Full Payment: Paying the owed amount in full can immediately rectify the situation.
- Installment Agreements: Setting up a payment plan can help in managing debts gradually.
- Offer in Compromise: This option allows taxpayers to settle debts for less than the total owed.
- Seeking Professional Help: Consulting with tax professionals not only provides guidance but also improves chances for favorable resolutions.
What Travelers Should Keep in Mind
If you find yourself in the unfortunate position of having received a CP508C before or during travel, you should know that you can continue to use your passport until it is officially revoked. However, if your passport is revoked while you are overseas, the State Department can issue a temporary passport for your return to the United States.
Act Now to Protect Your Rights to Travel
The implications of the FAST Act are clear; unless you act quickly to resolve your tax debts, you risk losing your ability to travel internationally. Resolving your tax issues not only provides peace of mind but also safeguards your freedom to explore the world. Seek help today to maintain that liberty!
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