2016 is just a few days away; you might be excited to travel abroad, or have already made plans, but with a new law signed by President Barack Obama, your travel plans might be compromised.
According to a new law, taxpayers who owe more than $50,000 may have their passport revoked. This change makes it more important for everyone to have well-ordered, up-to-date financial and tax records, and to eliminate all back taxes.
New Provision Changes
The new provision not only allows the IRS to revoke the passport of delinquent tax payers, it also allows the IRS to turn over certain unpaid taxes to private debt collecting agencies. However, delinquent tax payers outside the country will be allowed to return. And inactive tax delinquencies will be turned over only after the IRS has attempted and failed to locate the taxpayer and collect the owed amount, or when the amount is not worth their time.
The provision also exempts taxpayers under installment agreements, minors with large unpaid debts, military personnel, and innocent spouses. Another exemption applies to those seeking a hearing.
Low Threshold, Higher Tax Penalties
In today’s world, it’s easier to gain tax debts, and with the low threshold of $50,000, many of us are not far from having our passports revoked. While the penalties for late filing, interest rates, and other penalties continue to rise, the threshold is becoming smaller, and this new law becomes more significant for ordinary people.
Hold on to Your Passports – Fix Your Taxes NOW!
While this news may sound scary, it doesn’t have to be! With proper tax preparation and planning, expert IRS representation, and general tax issue resolution, you won’t be parted from your valuable passport.
Terry Kime and Paramount Business Advisors can help you handle any tax problems and find best resolutions fast, while finding ways to leverage all of the advantages you have that you may not even know exist. Call us today to make this new law an insignificant change for you!
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