On A Related Note: Taxes And Passports
For high-net-worth retirees who become delinquent in their taxes, the result can be more significant than compounding interest and accruing fees. Under the law, “Fixing America’s Surface Transportation Act,” known best as FAST Act, which was signed by President Obama in December 2015, the Internal Revenue Service can revoke or deny an individual’s passport if he or she owes more than $50,000 in taxes and is not in a resolution strategy with the IRS.
If a retiree owes the IRS back taxes of $50,000 or more they need to get into a resolution strategy with the IRS; such as a payment plan or an offer in compromise.
While we don’t know if and when the president’s proposal will be signed into law, we do know that change is forthcoming. For high-net-worth retirees, anticipating and planning for the revisions to the tax code today is prudent, and will save time and money in the future.
Deborah Gregory, Esq., is the co-founder of Gregory Law Group, PLLC, a Dallas-based boutique law firm specializing in audit, appeals, and collection processes before the IRS. Gregory has worked as a senior attorney for the IRS’ Office of Chief Counsel for 12 years and is an experienced tax law attorney.