Yes, and let me tell you why and how. There are many negative consequences associated with unpaid taxes, especially if they have been building up over the years. Tax debt brings many unwanted penalties and interest.
One of the biggest consequences one may face for tax debt is the revocation, cancellation, or limitations to their passport. Under the Fixing America’s Surface Transportation Act, Public Law 114-94 (FAST Act), as of December, 2015, the IRS holds the right to revoke or deny one’s passport in cases of serious “delinquent tax debt.” This means that if a person owes the IRS more than $50,000 in tax to the IRS, they are in serious trouble.
The $50,000 includes all penalties or interest accumulated on a person over the years. $50,000 seems like a rather large amount, and seems difficult to reach. However, it is important to remember that interest collects quickly, and it is much easier to pay taxes rather than letting the bill add up.
Although the revocation or denial of one’s passport seems like a very steep price to pay, it is a good way to remember to pay taxes on time and in full amounts. No person wants their passport taken away or denied!
Contact us if you or someone you know owes IRS tax, penalties and interest. We can help lower your tax bill or in some cases even eliminate your tax bill.