Another Travel Ban: IRS Moves To Revoke Passports For Unpaid Taxes

Tyler Durden's picture

Submitted by Robert Wood via Forbes.com,

President Trump's executive order on travel may be generating big protests, but an IRS missive on travel and passports may not go down too well either. More than a year ago, in H.R.22, Congress gave the IRS a new weapon to collect taxes. Tax code Section 7345 is labeled, “Revocation or Denial of Passport in Case of Certain Tax Delinquencies.” The law isn't limited to criminal tax cases, or even cases where the IRS thinks you are trying to flee. The idea of the law is to use travel as a way to enforce tax collections. It was proposed and rejected in 2012. But by late 2015, Congress passed it and President Obama signed it.

Now, over a year later, the IRS has finally released new details on its website

If you have seriously delinquent tax debt, IRS can notify the State Department.

 

The State Department generally will not issue or renew a passport after receiving certification from the IRS.

 

The IRS has not yet started certifying tax debt to the State Department.

The IRS says certifications will begin in early 2017, and the IRS website will be updated to indicate when this process has been implemented.

Here is the new information from the IRS. Seriously delinquent tax debt is an individual's unpaid, legally enforceable federal tax debt totaling more than $50,000 (including interest and penalties, but subject to an inflation adjustment) for which:

  • A notice of federal tax lien has been filed and all administrative remedies under IRC § 6320 have lapsed or been exhausted or

  • A levy has been issued

Some tax debt is not included in determining seriously delinquent tax debt even if it meets the above criteria. It includes tax debt:

  • Being paid in a timely manner under  an installment agreement entered into with the IRS

  • Being paid in a timely manner under an offer in compromise accepted by the IRS or a settlement agreement entered into with the Justice Department

  • For which a collection due process hearing is timely requested in connection with a levy to collect the debt

  • For which collection has been suspended because a request for innocent spouse relief under IRC Section 6015 has been made

Before denying a passport, the State Department will hold your application for 90 days to allow you to:

  • Resolve any erroneous certification issues

  • Make full payment of the tax debt

  • Enter into a satisfactory payment alternative with the IRS

There is no grace period for resolving the debt before the State Department revokes a passport.

Taxpayer Notification. The IRS is required to notify you in writing at the time the IRS certifies seriously delinquent tax debt to the State Department. The IRS is also required to notify you in writing at the time it reverses certification. The IRS will send written notice by regular mail to your last known address.

Reversal Of Certification. The IRS will notify the State Department of the reversal of the certification when:

  • The tax debt is fully satisfied or becomes legally unenforceable.

  • The tax debt is no longer seriously delinquent.

  • The certification is erroneous.

The IRS will provide notice as soon as practicable if the certification is erroneous. The IRS will provide notice within 30 days of the date the debt is fully satisfied, becomes legally unenforceable or ceases to be seriously delinquent tax debt. A previously certified debt is no longer seriously delinquent when:

  • You and the IRS enter into an installment agreement allowing you to pay the debt over time.

  • The IRS accepts an offer in compromise to satisfy the debt.

  • The Justice Department enters into a settlement agreement to satisfy the debt.

  • Collection is suspended because you request innocent spouse relief under IRC Section 6015.

  • You make a timely request for a collection due process hearing in connection with a levy to collect the debt.

The IRS will not reverse certification where a taxpayer requests a collection due process hearing or innocent spouse relief on a debt that is not the basis of the certification. Also, the IRS will not reverse the certification because the taxpayer pays the debt below $50,000.

Judicial Review. If the IRS certified your debt to the State Department, you can file suit in the U.S. Tax Court or a U.S. District Court to have the court determine whether the certification is erroneous, or the IRS failed to reverse the certification when it was required to do so. If the court determines the certification is erroneous or should be reversed, it can order reversal of the certification.

IRC Section 7345 does not provide the court authority to release a lien or levy or award money damages in a suit to determine whether a certification is erroneous. You are not required to file an administrative claim or otherwise contact the IRS to resolve the erroneous certification issue before filing suit in the U.S. Tax Court or a U.S. District Court.

Payment of Taxes. If you can’t pay the full amount you owe, you can make alternative payment arrangements such as an installment agreement or an offer in compromise and still keep your U.S. passport. If you disagree with the tax amount or the certification was made in error, you should contact the phone number listed on Notice CP 508C. If you’ve already paid the tax debt, please send proof of that payment to the address on the Notice CP 508C. If you recently filed your tax return for the current year and expect a refund , the IRS will apply the refund to the debt and if the refund is sufficient to satisfy your seriously delinquent tax debt, the account is considered fully paid.

Passport Status. If you need to verify whether your U.S. passport has been cancelled or revoked, you should contact the State Department by calling the National Passport Information Center at 877-487-2778. If you need your U.S. passport to keep your job, once your seriously delinquent tax debt is certified, you must fully pay the balance, or make an alternative payment arrangement to keep your passport. Once you’ve resolved your tax problem with the IRS, the IRS will reverse the certification within 30 days of resolution of the issue.

Travel. If you’re leaving in a few days for international travel and need to resolve passport issues, you should call the phone number listed on Notice CP 508C. If you already have a U.S. passport, you can use your passport until you’re notified by the State Department that it’s taking action to revoke or limit your passport. If the Secretary of State decides to revoke a passport, the Secretary of State, before making the revocation, may—

  • Limit a previously issued passport only for return travel to the United States; or

  • Issue a limited passport that only permits return travel to the United States.

If your passport is cancelled or revoked, after you’re certified, you must resolve the tax debt by paying the debt in full, making alternative payment arrangements or showing that the certification is erroneous. The IRS will notify the State Department of the reversal of your certification within 30 days of the date the tax debt is resolved.

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Archive_file's picture

What about corporate tax evasion? Can they revoke the passports of everyone on the board of corporations that "invert" or hide their shit offshore?

dogfish's picture

We would'nt want to hurt the elites feelings.

Croesus's picture

"Elite"? The Rules do not apply.

I still struggle to grasp What, exactly makes them "elite".

As near as I can tell, they're just degenerate, scumbags who encompass all of the negative qualities of human beings.

NoDebt's picture

I guess half the people who are on the air at MSNBC won't be leaving the country anytime soon.

 

City_Of_Champyinz's picture

I hope the first name on the list is Al Sharpton...It does start with A afterall.

The Saint's picture
The Saint (not verified) City_Of_Champyinz Feb 3, 2017 7:30 PM

I guess they should start with Charlie Rangle and George Soros.

Yeah, Al Sharpton and Warren Buffet, too.

 

Chris Dakota's picture
Chris Dakota (not verified) The Saint Feb 3, 2017 7:36 PM

Robert De Niro working on his raging new youtube vid.

Stuck on Zero's picture

No problem having your passport revoked for tax cheating. There are thousands of miles of unprotected border to cross.

lil dirtball's picture

... for now.

Build that wall!

August's picture

>>>There are thousands of miles of unprotected border to cross.

In which case you better have in hand either that proverbial second passport, OR

the ability to live under the radar in Canada or Mexico for the restr of your life.

onthesquare's picture

does this law apply to the "first among equals?"

hint DT

balolalo's picture

BABY STEPS TOWARDS AMERICA BEING THE PRISON

baby steps

bruno_the's picture

Starts with lies. Fat ones. Spam for you suckers 

Remember The Alamo!
Chris Dakota's picture
Chris Dakota (not verified) bruno_the Feb 3, 2017 8:37 PM

Many foreigners are financial terrorists.

Met one woman in about 2007 who wanted to give her house back to the bank, they wouldn't take it.

I said "why are  you leaving?" going back to Indonesia.

"Oh well, its not good here anymore the house doesn't go up now." Which meant she was living on home equity loans.

I was researching foreclosures and the biggest rape were from very foreign sounding names, Asia and Middle Eastern. Outright mortgage fraud.

And you know they just flew home.

They look at America as a job site, they are not invested in the country emotionally like I and many others are.

Patriotism is going to be highly valued in the near future.

turnoffthewater's picture

The way to stop that type of activity, only US citizens can own land. Happens to be the rules in many countries. Foreigners can only buy the second story of a condo or apartment.

Jubal Early's picture

Compare that to the elites, the vast majority of whom not only could not give a rats ass about the rest of us, who not only continually siphon off our wealth and life energy in my insidious ways, but who we now know actually have cults dedicated to murdering us, torturing us, harvesting our organs and even our souls.  It seems that these cults are using pedophelia and sexual perversion (and pop culture) as magnets to hormone addled youth to entice them and then suck them down some kind of satanic vortex.   So who is worse, the elite secret societies that are actively harvesting us, or the invaders they are using to drive us into the open so they can finish us off?  

Yog Soggoth's picture

Woman from Venezuela living in Venice Florida, started a Art Studio with my Ma. Things went OK for a while until she stopped paying her half of the rent. Then one night she used her key and took all of the more valuable artwork. She was an immigration lawyer who kept Africans hostage on her mini compound as slaves. No doubt the first thing she did was take thier passport. We have enough Yankee criminals to deal with here folks.

nmewn's picture

I was thinkin the same thing.

Maybe thats why Lena Dunham, Madonna etal haven't high tailed it for Canada...lol...perhaps we can all pitch in and pay it off so they can leave ;-)

peddling-fiction's picture

Go fund me the heck out of here?

wildbad's picture

...degenerate, scumbags who encompass all of the negative qualities of human beings

...that have LOTS of money

Mustafa Kemal's picture

"What, exactly makes them "elite"."

We call them that from C. Wright Mills "The Power Elite", where he clearly states that although they do not cultivate intelligence or morality, they do learn to understand how to play the power game to control the country.  They are the Power Elite. Good book.

OfAllElaboratePlans's picture
OfAllElaboratePlans (not verified) dogfish Feb 3, 2017 7:10 PM

No problem for the dual passport holders, they'll just use the (((other))) one.

SILVERGEDDON's picture

Won't work on the illegals making cash under the table either. 

They don't need no steenking passports.

If the IRS was hard core instead of being like all snowflake pussies, they would tax all Western Union money transfers to Mexico.

That - is a fucking gold mine, fellahs. 

Except, it would cut into the Democratic Party's illegal voter fan base. 

Another executive order for Donnie, mebbie ???? 

Mustafa Kemal's picture

"If the IRS was hard core instead of being like all snowflake pussies, they would tax all Western Union money transfers to Mexico.

That - is a fucking gold mine, fellahs. "

Something like that is coming. I see bitcoin having a bright future in remittances.

Yog Soggoth's picture

Example; a drug cartel wants to launder some proceeds so they get an illegal to take a loan from him through a bank or some other type of lending tool. He in turn buys a dilapitated tire shop in a formerly black niegborhood in the USA. Runs the shop and takes cash. Does his selective bookeeping and pays all business licenses and taxes. Sends back substantial amounts to Mexico. If caught, ehh. He is a hero with a nice retirement package if deported. They usually pick an old guy who just wants to make a better future for his many great grandchildren. Letter goes to no bueno address. Visa? (sound of Mexicans laughing with intermittant whistling and shouting.) That is what you get with the fox guarding the henhouse.

Sonny Brakes's picture

The corporations download their taxes onto their customers and workforce. That's one of the reasons why no one gets a raise anymore.

1980XLS's picture

this is not new.

You can be banned from domestic travel if your state does not have the "High Tech" driver's licenses either

Wow72's picture

"this is not new."

No its not, just insane.  When are people going to put their foot down? Does anyone see a problem with this OR is it just me?

Chris Dakota's picture
Chris Dakota (not verified) Wow72 Feb 3, 2017 7:41 PM

I knew all this was coming and more. I said it was 1933 all over again.

One guy yelled at me "One more Trump is Hilter" ....well....

Bush/Obama brought this man.

Americans are too clueless to know how bad things really are here now.

He is trying to save the nation.

Expect more.

there is no going back, Hillary or any of the others would have pushed us off the cliff.

I think he is a little wild, but he will put down the left like rabid dogs.

Mustafa Kemal's picture

"this is not new."

Ok, so whats the point? Thats the method. Set it up but dont ruffle for a while so you dont know you just lost a freedom. Then you pull it out later and use it. No, its not new. But it is coming soon to a theater near you.

The central planners's picture

TRUMP!!!! TRUMP!!!! TRUMP!!!! OMG WHAT A DECEPTION AND ONLY TWO WEEKS WAR WITH IRAN DIPLOMATIC HELP TO THE UKRANAZIS EASING RULES TO THE BANKERS AND THIS WILL CONTINUE...

Kirk2NCC1701's picture

Rx is obvious: 

1. INCORPORATE!

2. Get 2nd passport.  ZH writers have been telling you about this for years

3. Pay your taxes

Pick a door.  Any door.  Just stop bitching like a Snowflake.

(fyi... i picked doors 2 and 3)

Wow72's picture

and to those of you saps that fall through the loop hole, how do you like freedom? Isnt it Great!

basically it filters out a few unlucky people is all it does, certainly wont be the priviledged? Seems like a great system? Really well thought out.

brain_glitch's picture

And what about dual citizens?

SilverRoofer's picture

And put on unpaid student loans on the list as well

JRobby's picture

This is listed on current tax due notices from the IRS as though it is already law. But it is a " pay up now or lose your passport " pitch which they apparently think will bring in more collections.

Anyone that owes $500k or more ought to "clear out the back" while the gettin is good. Less if the payment is going to be a hardship going forward. Bail.

Was that the Clinton's that just ran by? Nah!

 

August's picture

>>>Anyone that owes $500k or more ought to "clear out the back" while the gettin is good.

Agreed, unless you think it's worth $500K to visit Disneyworld, or take in NBA/MLB/NFL games.  To quote my CPA:  if you've been running an unreported offshore corporation, offshore trust or what-have-you, the most sensible course of action is to never return to the USA.

Still, if you leave the Homeland with a large IRS "obligation" (ha, ha, ha), there is an excellent chance you will have diffiulty in ever renewing your US passport, or in obtaining legal citizenship or residency anywhere without already holding a valid passport, at least in any first-worldish country.

In summary, if you ever expect to expatriate, line up your alternative residency and citizenship pronto.  That is to say, now.

Cue:  Simon Black.

Yog Soggoth's picture

Well now, is that not what this is about? I always have like Simon's take on the world, but I don't think it will fly in the US much longer. So they leave with their fiat, what happens next? Walls are not just physical, they can be pieces of paper. Remember paper beats rock, scissors beats paper.

brianshell's picture

Now that corporations are "people".

Sonny Brakes's picture

Another reason to build that wall.

Dilluminati's picture

Oh you mean that you can't just break the laws in sanctuary cities and not pay taxes either?

But Obama encourages you to vote and protest?

INCREDIBLE!

llegals not paying taxes!

CRM114's picture

I know where the tumbrels will be filled up first.

TalkToLind's picture

If you have dual passports, it won't matter.

shamus001's picture

This isnt new news. The IRS will also kick in your door, seize your assets, lock you up in Federal prison...the list goes on...

END: Pay your F*n taxes or the man cometh!

Ms No's picture

If the people try to have a tax revolt everybody will end up in ass-rape prison.  So maybe if everybody clogged up the tax court they would get the idea.

I hope I don't go to ass-rape prison for suggesting that.

His name was Irwin Schiff!

JRobby's picture

The concept of the IRS's power is similar to fractional reserve banking / namely a bank run.

If everyone pulls their money all at once

If everyone says fuck you all at once 

Same result: COLLAPSE!!!!!

TRM's picture

It's like Aron Russo said in an interview when asked if he paid taxes. He bluntly stated that he couldn't advise people to not pay them because "They are exactly like the mob. If you don't pay they'll break your legs."

As Joe Bannister's lawyer (who won the case for Joe) said "You have to be prepared to lose absolutely EVERYTHING if you go up against the IRS".

So your freedom, money and very life or you pay your taxes.

oldguyonBMXbike's picture

I have a right to travel, so fuck you all.