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IRS Gains Power to Revoke Passports of Delinquent Taxpayers

The President signed the “Fixing America’s Surface Transportation Act” into law on December 4, and a portion of this act enables the IRS to revoke the passports of delinquent taxpayers who owe more than $50,000 to the Internal Revenue Service.  In a section of the law entitled “Revocation or Denial of Passport in Case of Certain Tax Delinquencies” the new legislation also provides more latitude for the IRS to hire external tax collectors to assist with the collection of unpaid taxes.

If your passport is revoked by the IRS while you travel abroad, you will be allowed to return to the United States.  There are exceptions to the law including many situations involving the military, innocent spouses, and those who have entered into and are maintaining payment arrangements with the IRS.

The IRS will be able to assign “inactive” taxpayers to approved external tax collection agencies.  Inactive taxpayers include those who cannot be located, or those for whom IRS collection efforts may not be worth the agency’s time.  These tactics are designed to extend the reach of the IRS, and empower the agency to collect delinquent taxes in areas where the agency may find persistent present challenges.

The experienced tax collection attorneys at Allen Barron have protected our clients from the IRS and their draconian tax collection practices for years.  We invite you to contact us for a free consultation at 866-631-3470 to discuss your significant tax delinquency challenges.  Learn about the protections of the attorney-client privilege and all that Allen Barron can do to help resolve your challenges with the IRS and place you on a road of financial recovery.