More than a quarter of a million Americans are at risk of losing their passports unless they pay their taxes, according to a new report in the Wall Street Journal. Which is because in February, the federal government began to impose a law that was passed 3 years earlier. This year, the Internal Revenue Service has actually been implementing a law checked in 2015, the Fixing America’s Surface Transportaition (or FAST) Act, which needs the company to alert the State Department about people who owe a “seriously overdue tax debt.” That means that the IRS is informing the State Department about taxpayers who owe more than $51,000 in back taxes, charges, and interest. The FAST Act needs the State Department to reject passport applications or renewal applications, and in many cases withdraw the passports, for people with such significant tax financial obligations. If a debtor gets a passport, the application is exposed for 90 days so the candidate can solve the issue, and if they do not, they need to reapply for the passport.
The Wall Street Journal reports that 362,000 people are impacted by the new policy, and the IRS is sending out names in batches to the State Department, which has actually currently rejected passports to some people with tax debt. And the policy is currently working, with one debtor paying a tremendous $1 million to prevent passport concerns. In general, people had actually paid over $11.5 million, and 1,400 other individuals had actually registered for a payment program. If this applies to you, you can prevent having the IRS inform the State Department by paying your tax debt completely, or paying it under an authorized time payment plan or compromise arrangement. Some taxpayers, like people who have actually applied for bankruptcy or victims of identity theft, will obviously be exempt from the new policy. You can take a look at the IRS’s statement on their website for more details.Read More