Owing Taxes May Prevent You From Traveling

Believe it or not, if you owe back taxes, you may be prevented from traveling abroad. How is that possible? Well, on December 4, 2015 President Obama signed legislation passed by Congress that gives the State Department the authority to revoke, deny or limit passports to anyone the IRS certifies as owing more than $50,000 in tax debt.

The little known provision was buried in a massive (1,300+ pages) piece of legislation called the Fixing America’s Surface Transportation Act (“FAST Act” for short). The primary objective of the bill was to fund highway development and repair. And the relation between highways and passports is remote at best, but hey, it’s government.

Taxpayers who have current installment agreements for taxes with the IRS are exempt from the law. So the bill is not completely in left field, but it’s definitely off the beaten path. If you have travel plans and owe taxes, it’s probably time to bite the bullet and sit down with your tax professional. Schedule your free tax consultation today by calling (480) 888-7111 or submit a web request here.