Richard,
The answer is Yes.
Under current law, IRC § 6331(k) provides that no levy may be made during the time an installment agreement (or Offer-in-Compromise) is either pending or in effect. It is expected that the provisions under H.R. 22, will be drafted similarly and will impact those owing greater than $50,000.00
As you may have seen in parallel circumstances with NYS, a wage garnishment of 10% typically would not stave off other enforced collection measures – because it would not constitute a formal “installment plan”. It would be the same here. Ad hoc remittances would not represent a formal arrangement to pay.
I anticipate that these new Federal provisions will face significant opposition, however, as of January 1st….it is expected to become law. Taxpayers facing liens and levies with an account balance in excess of the threshold can have their passport rescinded and/or prevented from the issuance of a new one.
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Eric L. Morgenthal, Esq., CPA, M.S. (Taxation)
LAW OFFICE OF ERIC L. MORGENTHAL, PLLC
150 Broadhollow Road, Suite 207
Melville, NY 11747
(631)265-8000
Original Message:
Sent: 12-15-2015 16:12
From: Richard Finelli
Subject: passport revocatoion
Has there been a law passed a indicating that if you owe federal taxes that they can revoke/not renew a passport. i believe that this is a law related to NY taxes due already
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Richard Finelli
RICHARD A. FINELLI, CPA PC
Babylon NY
631-482-9400
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