Don’t Book That Caribbean Vacation If You Owe The IRS…

While few were paying attention last winter, Congress passed The FAST Act, 2015 Fixing America’s Surface Transportation Act, to address our nation’s infrastructure. The FAST Act,  enacted on December 5, 2015, allows the IRS, for the first time, to share information with the State Department. This sharing provision opens the door for the State Department to take action against U. S. taxpayers who owe money to the IRS by revoking their existing passports or refusing to issue or renew a passport.

The triggering amount of tax, penalty and interest owed to the IRS is a paltry $50,000 to be considered a “seriously delinquent debt” under the new law.   Upon certification, the IRS will go to the Secretary of State which will in turn move to deny or revoke the taxpayer’s passport, an amazing restriction on the right of a U. S. citizen.

To certify a taxpayer, a prerequisite for the IRS is the filing of a tax lien or a notice of levy on the tax delinquency.  In light of this prerequisite, will the IRS move forward with liens and levy notices too soon?  Hopefully not.  Many IRS collection matters in high dollar cases are resolved by the threat of a lien being filed.  Once the lien is filed, the damage is done and the IRS loses an important negotiating tactic in certain high dollar cases.

Tell Congress: Pass the Fair Tax Act of 2015! Sign the petition.