As President Trump's executive orders regarding immigration
hold the world's attention, other new challenges for travelers
are brewing. Specifically, these challenges may impact U.S.
travelers who have seriously delinquent federal tax debts.
Last week, pursuant to 2015 legislation, the IRS announced that
within 30 days it will begin advising the U.S. State Department of
U.S. citizens with seriously delinquent tax debts. As a result of
these notifications, the State Department is expected to take
action within 90 days. Citizens who have federal tax debts in
excess of $50,000, including interest and penalties, may have their
U.S. passports revoked within the next few months.
Additionally, U.S. citizens residing or traveling overseas may
be required to return to the United States until their tax debts
If a citizen is certified by the IRS as having a seriously
delinquent federal tax debt, the IRS must transmit the
certification to the State Department for action as to the denial,
revocation or limitation of that individual's passport.
Accordingly, applicants who are included on the certifications are
ineligible for a passport.
Citizens who have such tax debt can only avoid passport
revocation if he/she enters into an installment agreement or an
offer in compromise with the IRS or is granted innocent spouse
relief or pays the debt in full. Additionally, taxpayers who have
made a timely request for collection due process hearing
(i.e., a hearing wherein the underlying tax liability may
be contested) can also avoid revocation while the hearing is
We will continue to monitor these activities closely to
understand the nature, timing and extent of the State Department
actions once the IRS notification process has commenced. If you
feel you may be impacted by these notifications, and you have
upcoming travel plans or are forced to return to the United States,
we urge you to act promptly. There are a variety of options
available to settle outstanding tax debt, often at quite favorable
If you would like more information about this topic or
your own unique situation, please contact any of the practitioners
in the Tax Accounting Group. For information about other tax and
accounting topics, please visit our publications page.
Disclaimer:This Alert has been
prepared and published for informational purposes only and is not
offered, nor should be construed, as legal advice. For more
information, please see the firm's
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March 1, 2017 - Federal immigration authorities conducted the 6th round of invitations under Express Entry in 2017 inviting 3884 candidates for permanent residence. The lowest CRS score was a record 434...
March 9th - Skilled workers will receive their Canada work permits and Canada visa applications processed within two weeks beginning June 12, 2017 as part of a new Global Talent Stream in the Temporary Foreign Worker Program.
January 25, 2017 - Federal immigration authorities conducted the 3rd round of invitations under Express Entry in 2017 and 53rd overall, inviting 3508 candidates for permanent residence, the largest to-date. The lowest CRS score was 453, a continuing trend of decline from previous draws.
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