President Obama signed the FAST (Fixing American’s Surface Transportation Act) into law on December 4, 2015. Embedded within that law is one provision that can have serious consequences for passport holders who also have delinquent tax debt in excess of $50,000.
If you are an ex-pat living overseas or if you travel abroad for leisure and are delinquent on a tax bill of $50,000 or more, you could have difficulty renewing your passport.
The Secretary of State has the ability to deny a passport application or renewal to individuals who have been identified by the IRS as delinquent on their taxes.
As with most bills, this provision is tied to a bill that is unrelated to tax and IRS matters.
It is important for you to seek counsel if you are living overseas, travel abroad, have foreign income or assets, a spouse who is a non-US citizen, a foreign inheritance or stock options.
Only a licensed tax professional skilled in US tax laws and foreign tax matters is qualified to address your tax debt if you are a passport holder or will be applying for a passport in the near future.
Your tax professional can assess your overall tax scenario, including income or assets that could result in a significant tax bill now or in the future.
The IRS defines “significant” tax debt as $50,000 or more, indexed for inflation and including fees and penalties.
Don’t wait until your passport application or renewal is denied. If you travel abroad frequently and are delinquent on your taxes in excess of $50,000, we can help.
We will carefully assess your tax status, advise you if you qualify for tax relief or any of the other available options, and formulate a plan of action.
Get started today by contacting us using any of the methods described under the”Contact” tab on our website. Don’t let a large tax delinquent tax bill jeopardize your ability to travel or live overseas.