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 email@example.com.
Cell (352) 317-5692
Office (352) 376-9401
Fax (352) 376-9440