If flying abroad is on your to-do list, then you better hope you’re on good terms with the IRS.

This spring, the agency started enforcing a new rule and began denying passports to delinquent taxpayers who owed more than $51,000

The rule, which the IRS began to elaborate on more this month, may affect as many as 362,000 Americans.

RELATEDHow much to budget for a vacation and other travel tips from Peekz ConsultiN

In the future, the IRS says it may ask the State Department to revoke passports of taxpayers who are delinquent, but for now, is mainly denying passports up for renewal, the Wall Street Journal reports.

The Journal breaks down the new rule, step by step for taxpayers. 

There are some exceptions.

Taxpayers who have filed for bankruptcy, are in a federally declared disaster area or are a victim of identity theft aren’t subject to the rule. Also, if you owe more than $51,000 in taxes but already are on a payment plan with the IRS, your passport isn’t at risk under the program.

For a full list of exceptions and rule details, visit the IRS website

 

PHOTO CREDIT: Tony Webster–Flickr–CC 

Peekz ConsultiN LLC is a Pittsburgh-based accounting firm, located in the West Side, that caters to individuals, small businesses and nonprofit organizations. We aim to empower clients to help them take control of their finances and achieve their dreams.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s