Passport Blues!

Posted on by Lewis

I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

The Internal Revenue Service (IRS) is beginning to ramp up their enforcement actions against taxpayers that are not in compliance. They have already started to report all taxpayers that owe the U.S. Treasury in aggregate (both current and back taxes) over $55,000 to the Secretary of State. Upon receiving the certification, the State Department may deny a taxpayer’s passport application or possibly revoke your current passport (we understand this last action is normally a rare occurrence because of the right to due process under the law) 

However, the IRS has agreed to not forward the certifications for any taxpayers with a seriously delinquent tax debt if:

  • The taxpayer has filed for, and is currently in bankruptcy.
  • The taxpayer has been Identified by the IRS as a victim of tax-related identity theft.
  • The IRS has determined that the taxpayer’s account is in the Currently Not Collectible (CNC) category due to hardship (taxpayers can file for this status using form 433-F)
  • If the taxpayer is located within a federally declared disaster area.
  • Taxpayer has a recent request that is pending with the IRS for an installment agreement (IA).
  • Taxpayer has filed for an Offer in Compromise (OIC) with the IRS for determination.
  • Or the taxpayer has an IRS-accepted adjustment that will fully satisfy their tax obligation completely.

Fair warning, many of the bullets referenced above will “toll” the statute on a taxpayer’s Collection Statute Expiration Date (CSED).  Unfortunately, the IRS has created a report listing all clients that may be eligible to be reported to the Secretary of State, allowing any practitioner/professional to purchase said list for marketing purposes.

If ever you’re feeling overburdened by your tax situation or you’d rather be doing something else with your time, just remember we’re here to help you with all of your tax preparation, resolution/representation needs.  Now and in the future. Don’t put off addressing your tax situation. Feel free to contact us with any questions you may have in approaching your specific tax scenario.

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