In December 2015, President Obama signed a transportation bill that authorized funds to invest in America’s infrastructure for highways, public transportation and rail called the FAST Act.

Tucked into this bill was a provision regarding the IRS’ ability to collect delinquent taxes from US passport holders.

My firm, By The Book Taxes, located in Norwalk, CT specializes in income tax preparation for individuals, families and self-employed people. By the Book Taxes also helps clients resolve their tax debts by preparing and filing Installment Payment Agreements, Offers-in-Compromise, Currently Not Collectible and Innocent or Injured Spouse applications.

Since 2016, the IRS has been notifying the Department of State that there are passport holders who have “certified seriously delinquent tax debt”. You must owe at least $50,000 to fall into this category.

You will not be considered “seriously delinquent” if you are working with the IRS by applying for:

  • An Installment Agreement
  • Offer in Compromise
  • Collection Due Process Hearing
  • Innocent Spouse Filing

The IRS has not yet revoked anyone’s passport for being “seriously delinquent”, but if you apply for a passport or attempt to renew one with a balance due greater than $50,000 without being on some sort of payment plan or working with them on a  tax resolution option, your application will be denied.

If you have years of unfiled tax returns or owe the back taxes, please call me. I can help.