Tuesday, December 15, 2015

The FAST Act May Slow Your Travel Plans if You Have Tax Debt | Bethesda Tax Lawyer

The recently enacted Fixing America's Surface Transportation Act (FAST) was signed into law on December 4, 2015.  The FAST Act includes a few provisions that are relevant to taxpayers if they owe back taxes.  The two provisions that will affect the most people are, first, that the IRS can request that the Secretary of State revoke or deny a passport for individuals with a "seriously delinquent tax debt."  Second, the bill requires the IRS to hire private debt collections for certain types of debt. 

Under the section, a seriously delinquent tax debt is defined as $50,000 in assessed taxes, interest, and penalties for which a lien has been filed.  The bill does provide for exceptions to the international travel ban if the debts are being paid in a timely manner (e.g. the taxpayer has requested an installment agreement, offer-in-compromise, or innocent spouse relief).  Further, the taxpayer may file suit in the tax court or district court to determine whether the certification of the seriously delinquent was erroneous.  

If you have questions about the FAST act you should contact a tax professional.  For a free consultation on these and other tax-related matters, please contact The Law Offices of Aaron P. Richter, a Bethesda-based firm with expertise in Tax Controversy, Business Formation, Estate Planning, and Tax Preparation.

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