November 22, 2024
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PERSONAL FINANCE TAX TIMES

Stop! Don’t Lose Your Passport – How to Avoid Tax Troubles and Keep Traveling

Have you ever felt the urge to explore new places, only to find that the more you travel, the longer your bucket list becomes? That’s the beauty of being bitten by the travel bug! Recently, I had the opportunity to visit Munich, Germany, and the sight from atop The Kirche of St. Peter, after climbing 14 stories, was truly awe-inspiring. As an avid traveler, I always make sure to have my passport handy. But what happens if you owe taxes to the government? Can they revoke your passport?

Let’s delve into the details:

  • Under Section 32101 of the FAST Act, owing $52,000 or more in taxes can lead to the revocation or denial of a passport.
  • Taxpayer Advocate Services (TAS) have been advocating for taxpayers with delinquent tax debts, seeking to exclude those who are actively resolving their liabilities.

Recently, the IRS agreed to temporarily exclude taxpayers with open TAS cases from certification, a move welcomed by the National Taxpayer Advocate, Bridget T. Roberts. This change aims to protect taxpayers from the severe consequences of passport denials.

Despite the IRS’s efforts to implement the certification process, challenges remain. The vague standards in the Internal Revenue Manual may lead to arbitrary decisions, compounded by technology limitations hindering the issuance of certification notices.

If you find yourself with tax debts of $52,000 or more, consider seeking assistance from the Taxpayer Advocate Service for payment plans or penalty abatements. Consulting a Tax Professional/Enrolled Agent who understands the process can help you navigate this issue effectively.

In conclusion, for any tax-related concerns or inquiries, it’s essential to seek guidance from qualified professionals to ensure compliance and resolution. Don’t let tax debts hinder your travel plans – take charge of your finances with the right support and resources.

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