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Passport Restrictions

Passport Restrictions

  • The federal government and the IRS are now working hand in hand. If you owe any taxes and have not set up a payment plan with the IRS to make sure that those taxes are going to get paid the government can now restrict your passport.
  • Federal government and the IRS are now doing a joint program to restrict your passport that means you may not be able to leave or get back into the country before setting up the payment plans. Some states are even restricting drivers licenses.
  • Three types of payment plans are offered.

Hey everybody. This is Shauna, the Tax Goddess, here today to talk to you about passport restrictions. This is something new that came out. The federal government and the IRS are now working hand in hand. If you owe taxes, be careful for those of you out there, if you owe taxes and you have not set up a payment plan or otherwise worked with the government, the IRS, to make sure that those taxes are going to get paid, even if it’s long-term payment plans or whatever, they are now doing a joint program to restrict your passport, meaning you may not be able to leave the country. Even worse, you may not be able to get back into the country.

Of course, what they’re really trying to do is make sure that citizens are paying their taxes. Passport restrictions can have lots and lots of impacts, not only just allowing you in and out of the country on your passport, but they’re actually talking about in future years, they’re talking about putting that all the way down to for example, here in Arizona, not being able to cross the border into Mexico, not being able to do day trips. They are actually talking about potentially even restricting drivers licenses. In some states, they are restricting drivers licenses. Basically, all of this is to be said, that if you owe the federal or state government any taxes, make sure you’re contacting your CPA, make sure that you’re working with them to get a payment plan.

Get on the straight and narrow, get a payment plan. There are payment plans, there are three different types of payment plans. You can do a straight up payment, if you owe less than 50,000, for example, to the federal government, you can set up what’s called a “streamlined payment account” as long as you’re doing direct debit out of your account for those payments. The government will let you do that, and everything’s considered kosher, you’re good. With a lot of the states, they will set up payments over three months, and in some cases, you can set up something even like an offer and compromise, meaning, “I know that I owe you all of these taxes,” like let’s say you owe $50,000, but there’s no getting blood from a turnip and, “At the moment, I have $3000 to give you. I’m not really earning much.”

Maybe there’s been a change in income, a change in your W2, you’ve lost your job, something like that. An offer and compromise basically says, “Listen, I’ll give you the $3000 I have, if you wipe out this $50,000 worth of tax debt.” There’s lots of different ways to get … I don’t want to say get out of paying the government, but if you need help, there’s lots of ways to create payment plants or otherwise make sure that your passport doesn’t get restricted so that you can’t leave the country, which would be a problem. If you have any questions, make sure again you’re talking to your CPA and if you don’t have a CPA, reach out to us here at Tax Goddess. We love helping clients all across the country, in the entire US, and we even have clients overseas at this point.

If you guys saw any of our sister site, Without Bags, you saw the Tax Goddess herself out traveling, visiting some of our clients overseas. If you have any questions, we’d be happy to help you, and otherwise, hope you guys are having a fantastic beginning to this lovely summer. All right, hope you’re having a great day and we’ll talk to you later. Call us at the Tax Goddess if you need any help. Bye.

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PLEASE NOTE: As of late Aug 2018 there was a proposed law change that would disallow a double deduction for these charitable credits at the federal level for contributions made after Aug 2018. You are still eligible for the AZ state tax credits as the change would only impact your ability to take them as charity donations at the federal level.
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