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Tag Archive for tax debt

Tax Debt And Passport Revocation: The New Weapon Against Americans Abroad

John-Richardson- Tax Debt and Passport Revocation

US Passport application links Citizenship (State Dept) to Taxation (Treasury) to enforce “Taxation based Citizenship

The logical progression continues …

I just got off the phone with someone who has just received a letter from the IRS stating that:

1. He had a “seriously delinquent” tax debt; and

2. That notice of the “seriously delinquent” tax debt was being forwarded to the State Department.

(In 2016 I did a presentation on this topic just a few months after the law came into force. You may view the presentation here.) Read more

How Can You Remove An IRS Tax Lien?

What is a Tax Lien?

The Internal Revenue Service frequently files tax liens (federal) against taxpayers with unpaid tax obligations. Federal tax liens are documents that are filed with county governments (often where the relevant taxpayer lives or conducts business) informing the public that the taxpayer owes money to the IRS.

Liens are attached to a taxpayer’s property (both personal property and business property). This means that the IRS will have first dibs on the proceeds of your property such as your home or car. The tax lien can also impair your crediting rating.

However, the good news is that you can remove the IRS lien by following these strategies.

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How Can Tax Debt Affect My Passport?

How Can I Undo IRS Passport Revocation?

As we observed previously, there are considerable parallels between losing your drivers’ license for non-driving reasons and losing your passport for non-travel reasons. The IRS cannot suspend your license, because it is a federal agency with no jurisdiction in that area. But your U.S.-issued passport is another matter.

Courts have consistently held that traveling abroad is a privilege and not a right. That stance allows government agencies to invent their own rules when it comes to things like IRS passport revocation.

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Can Filing Bankruptcy Wipe Out Your IRS Tax Debt?

Life happens! Divorce. Job loss. Serious illness. These are life events that can cause financial hardship and force good honest folks to file for bankruptcy. Those who have struggled with an endless stream of expenses that never end often owe income taxes that just will not let them be.

Taxes are a part of life. This is true after bankruptcy. Before filing your income tax returns when there has been a bankruptcy, it’s important to know things. Many people have either partial or incorrect information whether and how bankruptcy could help.

The following information may help you get a few things straight and find the best choice for you:

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Delinquent Tax Debt Can Lead To Passport Revocation

Delinquent Tax Debt Can lead to Passport Revocation. The fixing America’s Service Transportation (FAST) Act of 2015 which was signed into law on December 2015 requires the Internal Revenue Service to notify the State Department of taxpayers who are certified as owing a seriously delinquent tax debt.

Seriously certified tax debt is $51,000 indexed yearly for inflation which includes interest and penalties. This tax debt remains unpaid and legally enforceable and all administrative remedies have been lapsed and exhausted.

The IRS is required to notify you at your last known address of their intent to notify the State Department.

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Important Facts To Know About IRS Levy

A levy is a legal seizure of your property to satisfy a tax debt. Refusal to pay the tax will have the following result. The IRS will usually issue a levy after they assess the tax and send a tax bill or a Notice and Demand for Payment.

If you still refuse to pay, then the IRS will issue a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy. The IRS may give you this notice in person, leave it at your home or business, or send it to your last known address by certified or registered mail with return receipt request. Read more

You May Be Denied A Passport If You Owe The IRS Money

If you owe the IRS taxes and have a substantial outstanding balance, there are several legal means the government uses to get those past due taxes paid. Continue reading to find out how this may impact you and your future travel plans.

The IRS and State Department have begun implementing a law passed back in 2015 that requires the State Department to deny passports to taxpayers who owe the IRS more than $51,000 in back taxes, penalties, and interest. Taxpayers who owe this much won’t be issued a new passport or get old passports renewed if the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy. Read more

The U.S. Will Now Bar Tax Delinquents From Travelling Abroad

I wrote back in 2015 here about new legislation that gave power to the Secretary of State to deny, revoke or limit the passport of persons with delinquent taxes. Code §7345 provides that the Commissioner of the IRS will provide notice to the Secretary of the Treasury, who will then transmit that notice to the Secretary of State, in regard to a taxpayer’s delinquent tax debt.

Generally, it applies to delinquent tax debt over $50,000 (adjusted for inflation), for which a notice of lien has been filed or a levy has been made. Upon receipt of a Code §7345 certification, §32101(e) of the 2015 FAST Act provides that the State Department will generally deny an application for issuance or renewal of a passport from such individual, and may revoke or limit a passport previously issued to such individual. Read more

IRS Allowable Living Expense Standards Aren’t Sustainable

At TAS, we help taxpayers from all walks of life. When it comes to taxpayers with tax debt, some taxpayers have the resources to pay their debt. This blog focuses on the method the IRS uses to determine the amount of basic living expenses it should take into account if a taxpayer needs to pay his or her tax debt over time.

Congress directed the IRS to make sure taxpayers who enter into offers in compromise still have enough money to cover their basic expenses. Read more

Are You Eligible For An Offer In Compromise?

You just heard or saw a commercial that promises, “If you owe the IRS $10,000 or more we can settle your tax debt!” Don’t fall for it. Even when you hear the announcer say “Yes, no problem! We can settle your tax debt no questions asked.” If you called and you’re on the phone with a sales person, listen to your instincts and hang up right away!

An Offer In Compromise (OIC) is what is being hinted at in these commercials. An Offer In Compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or when doing so creates financial hardship. However, there are many things that must be considered and questions that any respectable professional will ask prior to saying they can settle your IRS Tax debt for less than the full amount of the debt. Read more

IRS Strikes Out Darryl Strawberry For Outstanding Tax Debt

IRS to auction Darryl Strawberry’s deferred Mets salary. A minimum bid of $550,000 has been set for the January 20, 2014 auction which will offer a deferred compensation agreement that was part of Strawberry’s 1985-90 contract with the Mets.

Darryl Strawberry, the former MLB All-Star, New York Mets and Yankees star who has faced tax problems owes over $550,000 when totaling California state and IRS back taxes. Strawberry was well known as a home-run hitter with a large presence in the batters box.

Darryl is well known for leading the Mets to a World Series win in 1986 and the Yankees to championships in 1996, 1998 and 1999. But when it came to the IRS – it was three strikes and he’s out! Read more

Pay Your Tax Or Get A Credit Rating Downgrade!

According to Nassim Kadem’s article in today’s Australian Review (13 March 2014), the Australian Taxation Office (ATO) has floated the idea of having outstanding tax debts listed by the personal credit rating agencies. This would require a change to the secrecy provisions of relevant taxation statutes.

However, in the last several decades, these provisions have been considerably watered down to accommodate information exchange between the ATO and various Australian and international government agencies. Accordingly, it might be expected that Australia’s Parliament will not be averse to the ATO suggestion.

ATO Second Commissioner Geoff Lepper was appearing before a Parliamentary hearing Read more