All Americans are now being encouraged to pay their taxes to avoid losing their passport, as based on the law that will be enacted by the Congress that will deny or revoke the passports of the US citizens who failed to pay their due taxes.
Under the new law that is said to take effect in the coming month of January, the State Department is going to block the Americans who have serious delinquent tax debts from acquiring new passports and will also be allowed to cancel the existing passports of those who belong to the category. A complete list of the affected taxpayers is going to be compiled by the IRS with the use of a threshold of $50,000 of the unpaid federal taxes that include interest and penalties that are going to be adjusted for the inflation.
This rule has already been passed in same versions by both the Senate and House of Representatives. This is part of H.R.22 the highway funding bill which is before the conference committee. The Congress is said to pass this early this month.
In most instances, this passport provision will only apply when the taxpayer has been subjected to a lien that advises the creditors of a debt to IRS or a levy that endows an authority to the IRS to seize the assets. This will not apply in case the taxpayer is already in the process of settling the tax debt with IRS, like paying this through the installment plan or when the taxpayer contests the collection either in court of administratively.
However, the State Department can still issue a citizen a passport during emergency situations or for humanitarian reasons. Both the Treasury Department and State Department will not comment when the legislation is still pending.
Once it has been enacted in its current form, this new law is going to take effect on the 1st of January and will apply to all the existing debts in taxes. If the bill finally becomes a law, Americans who travel or live abroad will deem it necessary to pay attention to all their notices from the IRS, assuming that they are receiving them.
It is still unclear as to how many people are going to be affected. The most vocal critics of the provision are the advocates for around 7 million citizens of the US who live overseas and who also require their passports for different purposes such as residency permits or work visits and who might not receive IRS mail.
IRSMedic.com is a special firm that helps people deal with their tough tax problems. They know all too well that Americans need their passports as part of their different daily activities like hotel check ins, banking, and school registration of their children. With the new law that will soon take effect, they hope to lend a helping hand to more taxpayers for them to settle their concerns the right way.
Visit IRSMedic.com for more information.
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