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USA Citizens: Risks of Tax Non-Compliance



Since January 1, 2016, the US State Department was able to deny or revoke passports to US citizens having a “seriously delinquent tax debt” or no Social Security Number associated with their passport. A “seriously delinquent tax debt” is one where the taxpayer owed more than $51,000, after January 1, 2018 (indexed going forward), in tax, interest, and penalties. 

An Alert on the IRS website recently noted that beginning January 2018 the IRS will begin certifying tax debts to the State Department. After receiving certification from the IRS, the State Department will not generally issue a passport.

In addition to passport denial and revocation, several states impose non-monetary, non-criminal sanctions for certain taxpayers who are sufficiently delinquent on their taxes. For example, New York, California, Louisiana, and Massachusetts may revoke driving privileges. 

Action Item: If you have an outstanding U.S. tax liability, or are concerned you may not be compliant with your US tax obligations, contact us to discuss options. 


These articles are for educational purposes only. As it is impossible to include all situations, circumstances, and exceptions, a further review should be done for your situation. No organization or individual involved in either the preparation or distribution of these articles accepts any contractual, tortious, or any other form of liability for its contents. For any questions please give one of our principals a call: 250-370-2191 (James ex. 2; Richard ex. 7).


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