The current global health crisis affected every area of life. Temporary business closures, layoffs and distance learning put many incomes at risk, the natural result of which created complicated financial situations for many Californians.
Travel bans have reduced pollution, though also significantly minimizing countless family visits and work-related trips. Regardless of where you would like to go and why, you may anticipate the opportunity to leave the country after the pandemic. However, did you know that unpaid taxes could threaten to keep you grounded?
Tax debt and passport revocation
In some circumstances, if you owe over $53,000, the Internal Revenue Service (IRS) may certify your debt to the State Department. After that, passport application approval is unlikely. Meanwhile, your current passport could be revoked.
In terms of certified delinquent taxes, though, not all money is the same. Certain situations would not affect your right to leave the country. For example, you ought not face debt certification if you:
- Filed bankruptcy
- Are up to date on an existing installment agreement
- Reside within a federally declared disaster area
- Are an IRS-recognized victim of identity theft
- Have a pending Offer in Compromise
Depending on your circumstances, you may be able to contest passport revocation. IRS errors occasionally factor into matters, and a payment arrangement may establish acceptable terms for certification reversal.
If current events contributed to delinquent liability, your passport might be the last thing on your mind. However, a qualified tax professional can explain your options, help you understand how to satisfy your tax liability and advocate for the opportunity to get up in the air again once things return to normal.