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Owe Uncle Sam $50K in Taxes? You May Lose Your Passport

By Erin Arvedlund
February 27, 2017
Philly.com

Owe Uncle Sam $50K in Taxes? You May Lose Your Passport

By Erin Arvedlund
February 27, 2017
Philly.com

Read below

Michael Gillen

Hoping to take a vacation or need to travel outside the United States? If you owe Uncle Sam back taxes, think again.

Americans who owe more than $50,000 in federal tax debt can lose their passports under a new federal law.

In 2015, Congress passed legislation allowing the State Department to revoke or deny passports to those with “seriously delinquent tax debt," according to Philadelphia tax attorneys. In March, the IRS will start implementing the new mandate.

[…]

Michael Gillen, director of the tax accounting group at the law firm Duane Morris, advised those who fall into the $50,000-in-back-taxes camp not to ignore it.

"The IRS will begin advising the State Department of the identities of U.S. citizens with seriously delinquent tax debts within the next 30 days," Gillen said in an interview, noting that the law could affect "hundreds of thousands" of Americans.

[…]

Another way to resolve the bill? Pay it in full. Taxpayers who request a collection due-process hearing to contest the tax liability also can avoid passport revocation, Gillen said.

"I have received dozens of calls this year from taxpayers, as well as from concerned friends, family members, and colleagues who have a loved one in such a situation," he said.

"And many people don't intentionally fail to pay, or they owe and can't pay it yet. They're not running from it," Gillen noted. "But now is the time to resolve your IOUs with the IRS."

To read the full article, visit Philly.com.