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What happens if you don’t pay your taxes?

tax relief help, tax debt relief, tax relief, student loan consolidation, Covid-19 tax relief

It’s hard to think of anything more stressful than dealing with IRS collections. If a taxpayer is unable to pay or make arrangements, what follows is a series of enforcement actions by the computerized notice system, automated collections system, and sometimes an IRS Revenue Officer knocking at their door. Computerized notices and automated collections system … Read more

Letter 6152 Passport Notice For Seriously Delinquent Tax Debt

IRS Penalties, innocent spouse relief, seriously delinquent tax debt

In a recent tax forum, the IRS stated that they are drafting a new Letter 6152 that will be sent to taxpayers who haven’t settled their tax debt. The letter will warn such taxpayers that their passport will be revoked.

The authority to revoke passports for “seriously delinquent tax debt” is provided under Internal Revenue Code § 7345.

Guide to IRS Penalties

There are many different types of penalties that the IRS can impose on individual and business taxpayers. Here are some of the more common IRS penalties.

Failure to File and Failure to Pay Penalty

Legal Authority

Legal authority for the IRS to assess penalties for failure to file and/or pay are provided by:

IRC 6651 – provides for additions to tax for failure to file returns required to be filed to report tax, and for failure to pay tax required to be reported on those returns
IRC 6698 provides for a penalty for failure to file a complete partnership return as required under IRC 6031.
IRC 6699 provides for a penalty for failure to file a S-corporation return as required by IRC 6037.
The penalty for failure to make required payments under IRC 7519(f)(4)(A).