If you are an American who plans to fly internationally, you had better make sure you do not owe any money to Uncle Sam.
The bill, “Moving Ahead For Progress In The 21st Century Act” or “The Highway Bill” has not been well-received by the media. This new bill would require people to fasten black boxes to their cars. Also connected to the bill is a provision that will seriously influence taxpayers who have IRS debts. According to a newly passed Senate bill, those who owe the Internal Revenue Service (IRS) back taxes may be prohibited from leaving the country.
Section 40304 permits the IRS to revoke U.S. citizen’s passports if they owe a substantial amount of tax debt. Those Americans who owe more than $50,000 will have their names registered with the Secretary of State to invalidate their passport status. Additionally, those taxpayers hit with a tax lien not only tarnish their credit score, but also diminish their ability to travel abroad until their taxes are paid. Under this new provision, taxpayers would only be allowed to fly back into the U.S. if they are traveling abroad.
If a taxpayer’s passport has been revoked, and they want to get this action reversed, they would have to enter into an installment agreement with the IRS, or get the debt suspended for special financial-burden circumstances.
While the new bill is intended to target wealthy individuals, by keeping them in the U.S. and preventing them from moving their assets overseas, it affects all Americans. Barbara Boxer, a democrat from California, introduced the bill to the Senate and it has passed in the Senate. Skeptics believe the bill will reach more resistance in the Republican controlled House, and there the back tax provision may be omitted from the bill entirely.
If you or someone you know needs help paying their back taxes, it is important to contact a tax expert. The tax resolution attorneys at US Tax Shield can help you today.