The IRS has started in 2018 enforcing the federal tax law revoking a taxpayer’s passport if the person is certified as having a seriously delinquent federal tax debt.  What is a seriously delinquent tax debt? According to the Internal Revenue Code § 7345, a seriously delinquent tax debt means an unpaid legally enforceable federal tax liability of an individual that is assessed, exceeds $50,000 (will be adjusted for inflation, in 2018 is $51,000), and either a Notice of Federal Tax Lien has been filed or a levy has been made.  If a person falls into this category now, the IRS must notify the State Department of the certified tax debt to remove his or her privileges of a passport.  If the federal government revokes use of a passport, but the taxpayer is a dual citizen, will the individual be able to still use their other passport?  As of the date of this article , there hasn't been any guidance addressing this issue nor any reciprocal agreements or provisions in any of the tax treaties between the US and a foreign country that state otherwise.

 

Individual taxpayers who receive an IRS Notice CP 508C are provided the legal notice required pursuant to federal law that the taxpayer has a seriously delinquent tax debt and his or her passport has been revoked.  Similarly, the IRS mails a Reversal of Certification, IRS Notice CP 508R when an individual taxpayer no longer has a seriously delinquent tax debt pursuant to federal tax laws and notifies the State Department.  If a taxpayer believes that a certification (the identification of an individual taxpayer having seriously delinquent tax debt) was issued erroneously, the law provides for a civil action in either US Tax Court or a US District Court.  The State Department will hold off on revoking a passport for 90 days to give a taxpayer ample time to resolve or pay the seriously delinquent tax debt.

 

Most people who receive an IRS Notice CP 508C have also received several other IRS collection notices for the tax debt owed.  There are several options for taxpayers to resolve their tax debts with the IRS that includes installment agreements, offers in compromise, currently not collectible status (a/k/a CNC status), bankruptcy (for some aged tax debts), innocent spouse relief, or contesting that the tax debt is owed.

 

At the Law Offices of Moffa, Sutton, & Donnini, our primary practice area is tax law.  We have defended clients, both individuals and businesses, against the Internal Revenue Service, Florida Department of Revenue, and other government entities or agencies for over twenty years. Call our office and ask to speak with Michael Anidjar, CPA, Esq. our federal tax director with any issues related to the IRS or federal tax laws.

 

About the Author:  Mr. Anidjar is licensed to practice law in both Florida and District of Columbia.  In addition, Mr. Anidjar has been a Florida licensed CPA since 2008.  Mr. Anidjar is currently the federal tax director at the Law Offices of Moffa, Sutton, & Donnini, PA, heading up both the federal tax practice and probate and estate planning.  Mr. Anidjar received his Master of Laws in Taxation (LL.M.) at Georgetown University Law Center and has been awarded the prestigious honor of Rising Star by SuperLawyers each year since 2015.

Posted in IRS Collections