For many, federal taxes are a year-round issue, especially if they are behind on paying what they owe. The pressure of owing back taxes to the federal government can affect many areas of a person's life. Unlike most other creditors, the IRS has powers it can use to recover the debt, such as garnishing wages and placing tax liens on property. The agency is now putting into action its new powers granted by a recently-enacted law.
Residents in Connecticut and across the country who have unpaid taxes may have reason to fear for the validation of their passports. For those who are seriously delinquent on more than $51,000 in taxes, the IRS has authorized the State Department to deny new passports, revoke existing ones or refuse to renew expired passports. This will likely affect over 360,000 Americans.
For those who are out of the country, the State Department may provide a limited validation to allow them to return to the U.S. Additionally, anyone who lives in a disaster area or who is already working with the IRS to catch up on late payments will be exempt from this new penalty. So far, the IRS has collected over $11 million in back taxes.
The penalties imposed by the IRS for delinquent taxes can bring serious complications to one's life. Tax liens place one's property in jeopardy, and the denial of a passport may have serious repercussions for someone who travels for a living or who has family outside the country. When facing tax issues due to owing the IRS money, Connecticut taxpayers may find the assistance of an experienced tax attorney to be of great benefit.