IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015 require the IRS to notify the State Department of taxpayers seriously delinquent tax debt.  The FAST Act also requires the State Department to deny their passport application or deny renewal of their passport or to even revoke their passport.

Taxpayers with a seriously delinquent tax debt are generally those who owe the IRS more than $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien or issued a levy.

Taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt by paying the tax debt in full, paying under an approved installment agreement, accepted offer in compromise or under an approved settlement with the Justice department or by having a pending collection due process appeal with levy. A passport will not be revoked after a request has been filed with the IRS for an installment agreement or if there is a pending offer in compromise with the IRS

A passport won’t be at risk under this program for any taxpayer who is in bankruptcy, or who is identified by the IRS as a victim of tax-related identity theft, or whose account the IRS has determined to be currently not collectible due to hardship or who is located within a federally declared disaster area.

IRS will postpone notifying the State Department and the individual’s passport will not be not subject to denial during the time such a delinquent taxpayer is serving in a combat zone.

 

Text of IRS bulletin 2018-3 – https://www.irs.gov/irb/2018-03_IRB

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About Bhatiaco

About Us Bhatia & Co, Inc, Certified Public Accountants is a diversified Full service financial and business services firm concentrating on providingservices to domestic and international organizations, with special focus on international transactions and tax planning. Our Team of highly skilled and diversified range of finance and business professionals provide services in areas of business and individual tax,audit & review, international tax planning, incorporation and corporatecompliance, accounting, outsourcing, business consulting, financial and retirement planning, immigration consulting and litigation support to adiverse range of clients.. We are located in the prestigious Techmart building in the heart of Silicon Valley in Santa Clara,CA for the last 13+ years and have offices in New Delhi for 30+ years. . Our current engagements include cross border tax planning and transactions, corporate structuring, and complex Tax audits and representation including recent oversees disclosure programs (OVDP/OVDI). Our organization is headed by Neeraj Bhatia, who is an accomplished accounting professional with 30+ years expertise in international and domestic tax planning and compliance for startups and multinational entities. Neeraj is a licensed CPA in California, New York and Colorado and a CA in India. He also has a LL.M. in International Taxation from the US, Costs and Works (Management) Accountancy, and a Bachelor (Honors) degree in Commerce from India. During his academic years he has received several awards and scholarships for being the top ranker nationally.

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