The IRS can have your Passport Revoked

By
Services for Real Estate Pros with Backoffice Squared

I represent taxpayers in Gainesville and the state of Florida who have tax issues with the IRS. One of those issues is debts owed to the IRS for past taxes. The IRS has a lot of tools in their toolkit to include seizure of cash accounts and levies on wages. One of the newest tools is to revoke the passports of people with “significant” tax debt.

How much is significant? Currently it’s $52,000. The State Department is required to deny applications for new or renewing passports. If you already have a passport, the State Department may revoke it or place limits on your travel.

The IRS wants to use this as a hammer on people who need to do international travel. After turning your name into the State Department to restrict your passport, they will send you a Notice CP508C. This notice will list all the options you have to get your travel privileges back. Depending on how badly you want to travel, there will be a lot of pressure to get the debt under the $52,000 limit or make an installment plan. The following options can get your passport back:

  •          The certification is erroneous
  •          The tax debt is fully satisfied or becomes legally unenforceable.
  •          The tax debt is no longer seriously delinquent, meaning:

o   You and the IRS enter into an installment agreement allowing you to pay the debt over time.

o   The IRS accepts an offer in compromise to satisfy the debt.

o   The Justice Department enters into a settlement agreement to satisfy the debt.

o   Collection is suspended because you request innocent spouse relief under Internal Revenue Code Section 6015.

o   You make a timely request for a collection due process hearing in connection with a levy to collect the debt.

Here is the killer for most people caught up in this. It takes time to get two giant government bureaucracies to do anything. You can anticipate a minimum of two months to get off the list of taxpayers with significant tax debt. The IRS says they will do their part within 30 days. Label me as extremely doubtful.

If you or someone you know has received a Notice of Intent to Levy or some other federal or state tax issue, please feel free to contact me at either (352) 317-5692 or email jim@backoffice2.net.

 

Jim Payne, CPA

Backoffice2

Gainesville, FL

Cell (352) 317-5692

Office (352) 376-9401

Fax (352) 376-9440

jim@backoffice2.net

https://backoffice2.net

 

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Rainmaker
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Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

I've been reading your blogs.  Good information.  I know of an agent in our area that has serious IRS issues.  I also know of an agent who has ignored the IRS for 10 years and not filled out a speck of paperwork/filed.  How do they get away with that?  Is it going to catch up with them someday?  (I know you can't answer that....).

Dec 02, 2019 04:04 AM #1
Rainmaker
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Jim Payne, CPA
Backoffice Squared - Gainesville, FL
CPA firm practicing in the area of IRS Collections

There are millions of non-filers according to the IRS. Why don't they catch more of them? In many of the cases, they don't want to because when they calculate the taxes due from W-2s and 1099s, it shows a refund. If that person does not file a return, they lose the right to make a claim for any refund of withheld taxes.

There are also a lot of people that try to fly under the radar by having any 1099s or W-2s repored with their ID.  The IRS now has programs searching through public databases to identify these low flyers.

Thanks for reading

 

Dec 06, 2019 02:07 PM #2
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Rainmaker
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Jim Payne, CPA

CPA firm practicing in the area of IRS Collections
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