Traveling Overseas for the Holidays?

Traveling Overseas for the Holidays?
Not If You Owe the IRS a Bundle

Tucked away in a transportation bill signed last December by President Barack Obama is a provision requiring the IRS to refer seriously delinquent taxpayers to the U.S. State Department for denial or revocation of a passport.

So you may be wondering what exactly a “seriously delinquent taxpayer” is…

To qualify as seriously delinquent, the taxpayer must owe the IRS over $50,000, including assessed taxes, interest, and penalties. Second, a notice of a lien must have been filed and all administrative appeal rights exhausted.

When sending the certification to the State Department, the IRS must provide notice to the taxpayer. Upon receipt of the certification from the IRS, the State Department is prohibited from issuing the seriously delinquent taxpayer a passport except for emergency or humanitarian reasons.

So there you have it. The IRS is the new Grinch in town with more power than ever.