As you know, whether traveling for business or pleasure, you need a valid passport for most trips outside the United States. These days, you even need a passport to fly to and from Canada or Mexico.

We want to make you are aware of a new law that’s on the books that requires and/or authorizes the State Department to deny, revoke, or limit your passport if you have “seriously delinquent tax debt.”

You have seriously delinquent tax debt if:

• the amount you owe exceeds $50,000, including interest and penalties;
• the IRS has assessed that amount; and
• the IRS has filed a notice of tax lien, and all administrative remedies have been exhausted or served to you by levy.

The $50,000 threshold is figured on a cumulative basis, not year by year, and includes interest and penalties. So it’s easier to exceed than you would think. The threshold is adjusted for inflation, but for 2017 it stays at $50,000.

The IRS sends you Notice CP508C when it certifies your unpaid taxes as seriously delinquent tax debt to the State Department.

If you receive such a notice, please contact us immediately so that we can help you. We can work together to make your tax no longer seriously delinquent. Some remedies include:

• entering into an installment agreement or an offer in compromise that satisfies the amount owed,
• requesting innocent spouse relief, or
• requesting a collection due process hearing following an IRS levy.

In many cases, your best solution is to request an installment agreement by submitting Form 9465 or calling the number on the IRS notice. Agreements satisfying tax, interest, and penalties of $100,000 or less receive favorable treatment.

Let’s be proactive about this new law and your situation, and get you set up so that you don’t have any seriously delinquent tax debt. If this sounds like a good plan to you, please call us, and we’ll get this process started.