Owing Back Taxes could Affect Passport Renewal

Starting in February 2018, individuals with "seriously delinquent tax debts" will be subject to a new set of provisions courtesy 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 and also requires the State Department to deny their passport application or deny renewal of their passport. In certain instances, the State Department may revoke their passport.

Taxpayers affected by this law are those with a seriously delinquent tax debt, generally, an individual 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.

Taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt by doing 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.

However, a taxpayer's passport won't be at risk under this program if an individual:

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

For taxpayers serving in a combat zone, and who also 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.

Taxpayers who are behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS and may qualify for one of several relief programs, including the following:

• Taxpayers can request a payment agreement with the IRS by filing Form 9465, Installment Agreement Request. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers may be eligible to use the online payment agreement to set up a monthly payment agreement for up to 72 months.
• Financially distressed taxpayers may qualify for an offer in compromise, 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.

If you owe back taxes and are worried your passport could be revoked because of unpaid taxes, please contact the office.

Why pay for a Grain Valley tax professional

Why pay for a Grain Valley tax professional to do your taxes, after all "it doesn't take a genius"?

Let's set aside the benefits of having the current year taxes prepared by a professional. The biggest reason to hire a tax professional is we tend to look holistically at your tax situation. We don't just look at this year but years past to see trends. We look forward not just to next year but often many years ahead. This allows us to do tax planning to the utmost benefit of our clients. We can advise on proper withholding, credits the clients might get or lose in the future, we talk about tax deferred accounts so clients can benefit tax wise in the near and long term future, etc.

If your tax professional has never looked ahead to upcoming years and discussed these potential issues with you then you should find one that does. It's well worth the time and money spent. Call us at 816-220-2001

Grain Valley Enrolled Agents

Blue Springs Income Tax and Financial Services

At Alliance Financial & Income Tax our Blue Springs Enrolled Agent's provide Income Tax and Financial services to individuals, families and small businesses in the metropolitan area. We provide personalized service for all of your financial needs. We have built our Blue Springs tax and financial services firm's reputation with our years of experience in handling both business and personal taxes in addition to financial services.

If you ever have a questions about the services we provide for your business, feel free to give us a call any time. Our Blue Springs Enrolled Agent team is here to help you fully understand the financial information and products that we provide.

Let our Enrolled Agents Help With IRS Problems

Are you struggling with tax issues in regards to the Internal Revenue Service? We can work with you and assist you in finding solutions for your particular problem. If you have received an audit notification, contact us today. We have the experience and qualifications to help you handle your situation.

Our Enrolled Agents offer guidance and services in many areas including the following:

• Back taxes
• IRS liens or levies
• IRS wage garnishments
• Personal property seizures

Some of the solutions our Enrolled Agents can provide include offers in compromise, payment plans, or bankruptcy advice. For offers in compromise we work with the IRS to reduce the debt. We can get you on a payment plan that you can afford and can help to avoid future penalties and interest.

Get the Help You Need from an Enrolled Agent

Being a successful tax and financial firm in the Kansas City area is more than just working with numbers. It’s providing the personalized financial services that the client deserves. We believe that Alliance Financial & Income Tax can meet your needs. Contact us today to start working on a plan that will work for you, your family, and your business.

We serve the Jackson County area including Blue Springs, Lee's Summit, Independence, Kansas City, Lone Jack, Oak Grove, Sugar Creek, River Bend, Greenwood, Grain Valley and all surrounding areas.

Income Tax Services In Blue Springs Missouri

Tax Professional vs Turbo Tax

Client and wife bring their turbo tax return in because the husband is concerned that their state refund was only $59, he was happy with the Fed. I looked over it and said “The state refund is right but your fed return is off by $2,500.00, you guys missed some credits.” I now have new clients, and my new clients now have more of their money back in their pockets.

Turbo Tax, costing American tax payers billions in lost refunds since 1993.

Grain Valley income tax professionals add value.   Give Alliance Financial & Income Tax a call today before you forfeit our hard earned money.

Need Help with Your Taxes in Blue Springs or Grain Valley?

Your Grain Valley tax preparation needs are as individual as you are.  Alliance Financial & Income Tax takes an active approach to our tax planning and tax preparation services, giving you the personalized guidance you need.  Today's tax laws are so complicated that filing taxes, no matter how simple, can quickly become confusing.

10 million tax payers missed out on a chance to receive a bigger refund last year simply because they neglected to fill out one line on their tax return.  Will you miss a similar opportunity this year?

Today's tax laws are increasingly complicated and the rules for deductions and credits change year by year.  Are you aware of all the deductions and credits that might be available to you this year, even on the most basic of tax returns?  Perhaps you feel secure in your do-it-yourself tax preparation software, but lets face it...There is not substitute for an experienced Enrolled Agent who can answer your questions and ask you the questions that might be key to saving you hundreds or even thousands in tax dollars. 

Tax Preparation in Blue Springs and Surrounding Area

Our Tax Preparation Services Include:

• Assurance that your return has been checked and double-checked for mathematical accuracy and errors that are commonly flagged by the IRS, resulting in fewer chances for contact by the IRS.
• Tips for better managing your payroll withholding so that you can have the advantage of greater income all year long, rather than loaning that money to the government and waiting for it to come back in the form of your yearly tax return.
• A list of common deductions that may benefit you in the coming year, and tips for limiting your future tax liability.
• Electronic filing for a quicker refund.

We  can help you get your paperwork organized with our tax preparation checklist of materials needed for individuals and small businesses.

If  you own a small business and haven't kept up your bookkeeping, don't worry; we can help.  We'll prepare your small business bookkeeping for the year, prepare your business tax return, as well as your personal income tax return.  Then we'll help you set up an easy system that allows you keep your books in great shape for next year.

If you'd like to receive more information about our Blue Springs Tax Preparation Services, please contact us today. If you are ready to schedule a time for us to visit you may schedule a time online that is convenient for you.  

 

Related Links

Income Tax Organizer

Individual Tax Preparation Checklist

Business Tax Preparation Checklist