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The IRS Now Has the Power To Revoke Your Passport?
The passport provision is now official! The law says the State Department can revoke, deny or limit passports for anyone the IRS certifies as having a seriously delinquent tax debt in an amount in excess of $50,000. Administrative details are scant. It could mean no new passport and no renewal. It could even mean the State Department will rescind existing passports.
The State Department will evidently act when the IRS tells them, and that upsets some people. We think of passports when traveling internationally, but they are being used domestically in many cases too. The list of affected taxpayers will be compiled by the IRS. The IRS will use a threshold of $50,000 of unpaid federal taxes. But this $50,000 figure includes penalties and interest. And as everyone knows, interest and penalties can add up fast.
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