When IRS Legal Issues Can Affect Foreign Travel

Getting a tax notice from the IRS can be stressful enough but if you don’t contest the IRS legal issues with the IRS or in court, you could be denied a passport or have your passport revoked. A new law entitled “Fixing America’s Surface Transportation Act” or FAST Act adds some muscle to the state’s tax collection efforts by giving the state the power to limit a passport’s validity, revoke an existing passport, or deny a passport application of a taxpayer with a significant tax debt.

IRS Certification

While the power to cancel or revoke a passport, limit its validity, or deny the issuance of one is not vested in the IRS, the tax agency can issue a certification indicating that a specific individual has a ‘seriously delinquent’ tax obligation amounting to more than $50,000. Acting on the certification, the state department can deny a pending passport application of the delinquent taxpayer, or cancel his passport. In appropriate situations, the state department may limit its validity to allow the taxpayer to return to the U.S.

Avoiding Passport Revocation in Tax Delinquency

You may be able to still get a passport or ask that the rule be relaxed in cases of emergency or for humanitarian reasons. Another remedy that can prevent the state department from imposing the sanction of a passport cancellation or limitation is to contest a proposed tax bill with the IRS or in court. A tax bill that is being contested, whether before the IRS or in tax court, is technically not yet a tax debt.

Protesting Your Tax Bill

The IRS may send you a notice informing you of unpaid taxes. Contesting the amount should be done immediately in order to preserve your right to dispute the assessed deficiency. Depending on the outcome of the protest, you may need to elevate your tax dispute to a higher body such as the tax appeals court.

Tax administrative and court procedures are highly complex matters that are best delegated to experienced tax attorneys. There are strict time frames for filing a protest and required documentation and technical language that can affect the outcome of your tax case. A tax attorney can thoroughly examine your situation, explain your next steps, and prepare necessary documents to obtain a favorable outcome for you.

Working out of Tyler, Texas, the Scammahorn Law Firm, P.C. has years of experience in federal tax litigation and other IRS legal issues. We have helped clients in various situations such as IRS audits and IRS court cases. We also handle related IRS issues such as liens and wage garnishment.

We invite you to call us today at (903) 595-1000 to find out more about how we can help you.