In January 2018, the US Internal Revenue Service (IRS) decided to use the law on the deprivation of the passport and the high tax debt, adopted three years ago. According to the law, information on “serious” non-payment of taxes, revealed in the IRS, must be transferred to the State Department on tax debts, where the fate of the non-payer will be decided. The State Department may refuse to issue a passport, revoke its renewal or cancel an existing document.
“Serious” debt is the amount of $ 50 thousand. At such a debt, the IRS will already have to provide the service with relevant information. According to the law, “unpaid, legally binding federal tax obligation” debt, the amount of which exceeds $ 50 thousand (plus accounting for a fine and interest), is considered a “serious offense”. The minimum amount of tax debt will change periodically – depending on inflation and the cost of living. Moreover, the total tax debt, rather than the annual period, is taken into account.
Tax debts do not fall into the category of “serious tax debt”, if they meet certain conditions:
- The payment was made in time, under an installment agreement, drawn up by the IRS.
- The payment was made on time, in accordance with the agreement with the Ministry of Justice or the Proposal for concluding a compromise agreement.
- When the innocent spouse is released from responsibility; division of tangible property.
When collecting due process, in order to collect the debt, it is necessary to file a request with Levy in a timely manner.
The State Department gives the non-payer 90 days during which he can take the following measures to avoid depriving the passport:
- Fully pay off tax debt.
- Find a compromise with the US Internal Revenue Service.
- Eliminate all errors in certification.
- When sending information to the State Department, the IRS must necessarily notify the defaulter in writing. The notification will be sent to the last specified address by regular mail.
The Tax Service informs the State Department when:
- The request was sent erroneously.
- The tax debt is partially repaid and is no longer critical.
- The tax debt is completely repaid.
If the taxpayer considers that the request of the IRS to the State Department is unreasonable, then in such a situation it is possible to apply to the US District Court or the Tax Court.
If a decision is made to cancel the passport, the State Department must notify the taxpayer. Prior to notification, the passport is considered valid.
In the event that a taxpayer needs to travel abroad, you need to contact the telephone number indicated on the notice CP 508C to find out the status of your passport. In other cases, you must call the State Department (National Passport Information Center number: 1-877-487-2778).
Picture Credit: geralt