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How to Avoid Having Your Passport Application or Renewal Denied Due to Owing Back Taxes
Beginning in February of 2018, the provisions of the FACT Act that was signed into law in December of 2015 went into effect. It requires the IRS to notify the state department of any taxpayer who has a seriously delinquent tax debt, and these people will be denied them a passport or renewal. In some cases, an existing passport can be revoked. However, there are ways you can avoid this from happening to you.

First of all, the obvious solution is not to get behind on paying your taxes. Don’t worry that your passport will be affected because you’re just a tad late on paying this year’s small tax obligation. This act is only for those who owe more $51,000 and the delinquency has already resulted in a levy or notice of tax lien.

If you do fall into this classification, your passport will not be in danger if you are paying the debt in a timely manner under an approved installment agreement or settlement agreement. If the debt is that of your spouse you may be able to have the collection suspended by requesting innocent spouse relief.

There are also a few other instances where your passport won’t be at risk. If the IRS has determined your tax liability is uncollectible due to hardship, you are located in a federally declared disaster area, you are a victim of tax-related identity theft, or you are in bankruptcy, your passport won’t be at risk under this program.

The best way to avoid a back taxes situation is with careful tax planning each year. Here at Gecinger Tax & Accounting, we can help you stay on track. We can also help you with applicable forms to work with the IRS to get the issue resolved, such as Form 9465, Installment Agreement Request.

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