California tax and bankruptcy expert Morgan King writes in his latest newsletter:
“The IRS has begun certifying federal tax debts of more than $50,000 to the State Department, which poses problems for travelers. Why? Because the State Department generally won’t issue passports to taxpayers who have been flagged for delinquencies.
Internal Revenue Code 7345 allows this. Once the State Department is notified, it can either deny a passport application and/or revoke a current passport. If it happens while a taxpayer is out of the country, the State Department may issue what’s called a limited validity passport that only allows a taxpayer’s direct return to the U.S.
However, the State Department will hold a passport application for 90 days before denying it.”
Wow. You can forget that trip abroad if you’re owing serious money to Uncle Sam. Imaging your embarrassment if you’re nixed at departure in front of friends, family or your boss. And if you’re abroad already when the government acts, the only option for your next destination is home — alone.
For more info, check out this link
to the IRS website.