If You Owe Back Taxes, Your Passport Could Be at Risk

Your Passport Could Be At Risk if You Owe Back Taxes

Owing back taxes can have serious financial and personal consequences. Not only can you end up owing substantial interest and penalties, but you could potentially face criminal charges for tax evasion. And, according to CNBC, those who owe a substantial amount of money in back taxes could end up losing their passport.

You don’t want to deal with all of the severe and ongoing consequences of tax delinquency, especially if there is a way for you to try to resolve your problems with the IRS. A Maryland tax lawyer can provide assistance to those who are facing tax problems and can help you to determine what your legal options are for resolving the issues that you are facing.

Owing a Lot of Money in Taxes Could Lead You to Lose Your Passport

As CNBC reported, those who either apply for a passport or who attempt to renew their passport will be unable to do so if they owe the IRS at least $51,000 in overdue taxes. The $51,000 in unpaid tax debt must be considered legally enforceable federal tax debt. It can include interest and penalties that are owed on outstanding taxes due.

However, not all tax debts are covered by the new enforcement rules. Taxpayers who are currently paying back taxes through an installment agreement with the IRS, an offer in compromise with the IRS, or a settlement with the Department of Justice are not included in the rule and thus won’t lose their passports. Those who have had their collections suspended due to a request for innocent spouse or a request for a due process hearing also aren’t going to be at risk of losing their passports.

An existing law permits the State Department to enforce a rule denying passports to delinquent taxpayers who have substantial outstanding claims with the IRS. Enforcement of the rule first began in February, when the State Department began using information on outstanding debts received from the IRS when determining whether to grant a passport or to renew one.

The IRS indicates that by the end of this calendar year, as many as 362,000 Americans who owe back taxes will be affected by the enforcement of the rule. It is also prompting some of the Americans who are impacted to take action to deal with their tax date. In fact, an estimated 220 individuals repaid the back taxes they owed since the end of June, resulting in the IRS collecting a total of $11.5 million.

If you are concerned that you may owe back taxes and that your ability to obtain a passport might be impacted as a result, it is important that you get the right legal help to address your tax issues. A Maryland tax lawyer can provide insight into how to deal with your tax problems proactively, protecting your finances and protecting your right to travel as a U.S. citizen. To find out more about how an attorney can help you, contact us today.