Tag Archives: Identity Theft

IRS Urges Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered

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The Internal Revenue Service strongly encourages taxpayers who are seriously behind on their taxes to pay what they owe or enter into a payment agreement with the IRS to avoid putting their passports in jeopardy.

The IRS will begin implementation this month of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. The FAST Act requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt. The FAST Act also requires the State Department to deny their passport application or deny renewal of their passport. In some cases, the State Department may revoke their passport.

Taxpayers affected by this law are those with a seriously delinquent tax debt.  A taxpayer with a seriously delinquent tax debt is generally someone who owes the IRS more than $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired or the IRS has issued a levy.

There are several ways taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt. They include the following:

  • Paying the tax debt in full
  • Paying the tax debt timely under an approved installment agreement,
  • Paying the tax debt timely under an accepted offer in compromise,
  • Paying the tax debt timely under the terms of a settlement agreement with the Department of Justice,
  • Having requested or have a pending collection due process appeal with a levy, or
  • Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.

A passport won’t be at risk under this program for any taxpayer:

  • Who is in bankruptcy
  • Who is identified by the IRS as a victim of tax-related identity theft
  • Whose account the IRS has determined is currently not collectible due to hardship
  • Who is located within a federally declared disaster area
  • Who has a request pending with the IRS for an installment agreement
  • Who has a pending offer in compromise with the IRS
  • Who has an IRS accepted adjustment that will satisfy the debt in full

For taxpayers serving in a combat zone who owe a seriously delinquent tax debt, the IRS postpones notifying the State Department and the individual’s passport is not subject to denial during this time.

  • In general, taxpayers behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS. Frequently, taxpayers qualify for one of several relief programs.
  • Taxpayers can request a payment agreement with the IRS by filing Form 9465. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers can use the online payment agreement to set up a monthly payment agreement for up to 72 months.

Some financially distressed taxpayers may qualify for an offer in compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to determine the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.

If you have any questions about this or other tax matters, call us at 813-514-2920.

IRS Continues Identity Protection PIN (IP PIN) Program in Florida

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The IRS is again offering the Identity Protection PIN (IP PIN) to all taxpayers who filed their federal tax returns last year as residents of Florida, Georgia or the District of Columbia. These residents don’t need to be identity theft victims to participate. This ongoing pilot program helps the IRS evaluate taxpayer demand for the IP PIN and assess their ability to issue the PIN to a larger number of taxpayers. The three locations covered by the pilot have the highest per-capita percentage of tax-related identity theft.

The IP PIN is a 6-digit number the IRS uses to confirm your identity when they receive a return with your name and Social Security number on it. This helps prevent identity thieves from obtaining a fraudulent refund using your SSN and avoid delays issuing any refund you may be due.

If you’re eligible and choose to get an IP PIN, visit Get An IP PIN. After you get an IP PIN,

  • you must use it on all future federal income tax forms 1040, 1040A, 1040EZ and 1040 PR/SS
  • the IRS will mail you a new IP PIN each year in late December or early January.

Identity theft is one of the fastest growing crimes nationwide, and preventing tax refund fraud caused by identity theft is one of the IRS’s biggest challenges. The IRS is focused on preventing, detecting and resolving tax-related identity theft cases as soon as possible.

If you have any questions on this or other tax related matters, call us at 813-514-2920.