Posted by Key Tax & Financial Services, LLC

8 Ways To Prevent The IRS From Taking Your Passport

8 Ways To Prevent The IRS From Taking Your Passport

The Internal Revenue Service in Washington has seriously encouraged taxpayers who are lagging in their tax payment to pay up their debt or come into an agreement with the IRS in other to avoid jeopardizing their passport. 

The IRS has begun the implementation of new ways relating to individuals having serious aberrant tax debts. These new process implement provisions of the Fixing America Surface Transportation (FAST) Act, was signed into law in 2015.

The FAST Act demands the IRS to inform the State Department of taxpayers certified by the IRS as owing a delinquent tax debt.

The FAST Act also requires that the State Department refuse their application for a passport or refuse their passport renewal. The State Department may in some cases revoke their passport.

The categories of taxpayers are those delinquent tax debts. It is advice that individuals get an accountant as well as a tax preparer.

Here are methods to apply to prevent the IRS from seizing your passport. The first and second methods are apparent

1. The IRS can reverse, or refuse to renew your passport if you are delinquent on the tax bill. A debt of-of over $50,000, interest and penalties inclusive is considered a seriously delinquent. Full payment must be made before you get back your passport and your travel rights.

2. Keeping your IRS dispute on, the debt won’t result in serious delinquency. Timely respond to all notice in good manners, file your disagreement, appeal the tax court. Keep on with some delays this can tie up the matter for some year while you retain your passport. Remember the debt will come home one day.

3. Try settling your debt with compromising offer leaning on your income and expenses. Negotiation and processing can input 1 or 2 years to the process of collection. All through this period, the IRS is banned from reversing your passport. Note that an offer in compromise has its cost on you. The IRS has ten years to retrieve the debt from you. Once the ten years is over, the debt almost always falls away.

4. Allow the statue run. You don’t need extending the statue if you have one or two years left. Once the expiration of the debt reaches, the government will be under pressure to return your passport.

5. File bankruptcy. Most income taxes are released in bankruptcy. If the income tax debt is above three years,  and a tax return for the debt is filed minimum two years before filing the for bankruptcy the debt should be canceled.

6. Agree on an installment payment method. The size of the debt notwithstanding as long as you keep to your agreement you won’t be seriously delinquent  EVEN IF YOU OWE 1 million dollars and pay 300 dollars every month, you won’t lose your passport. An installment payment is a complicated issue. Payments are made based on income and expenses. If you are making much money, you won’t get an installment payment agreement if your passport is at risk contact a professional.

7. Get a permanent residency of a foreign country before the IRS revokes your passport. Permanent residency will equip your bargaining stand. However, you won’t be permitted to travel outside your country of residence because of the lack of a valid passport. You won’t also be forced to return to the US, but you can stay where you are and start a negotiation with the IRS.

8.  Buy and get a second passport before you lose your United States passport. If you have acquired a second passport, losing your US travel document will have less effect. You will be allowed to leave the US on this passport. Hence the IRS has no reign over you. You are permitted to travel to any country which permits a visa-free entry with that other passport.

You can hold off the IRS for two years and then ponder Nicaragua. You can become a resident of the country with a $35,000 investment. You must as well live there for six months a year for two years. After this, you can then apply for citizenship and a second passport. 

Key Tax & Financial Services, LLC