Saving a Client From Losing Her Passport for Serious Tax Delinquency

Under the law, when a taxpayer has a seriously delinquent tax debt of $62,000 (adjusted yearly for inflation) or more, the IRS is authorized to certify that debt to the State Department—putting the taxpayer's passport at risk. Upon receipt of certification by the IRS, the State Department may deny a passport application and may also revoke, suspend, or limit passports previously issued.

Foodman CPAs & Advisors helped a U.S. taxpayer with seriously delinquent tax debt reinstate her passport after it was suspended by the IRS. In this case, the taxpayer needed a valid U.S. passport to keep her job. Since she could not pay the full amount owed, we created a successful Offer in Compromise on her behalf.