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CLIENT ALERT: Taxpayer Passport Application will be Denied Due to Unpaid Taxes

Client Alert

In late 2015, Congress passed The Fixing America’s Surface Transportation Act (FAST) into law. This law allows the IRS and State Department to refuse to issue a Passport if the taxpayer has a seriously delinquent tax debt. The law also permits the IRS and State Department to revoke a taxpayer’s Passport for these same delinquent tax debts. To be considered a seriously delinquent tax debt, the tax debt must total more than $51,000.

 

While some taxpayers may not think they have unpaid taxes near the $51,000 threshold, the amount includes penalties, interest, and assessed taxes. These added amounts could easily increase a taxpayer’s tax liability above $51,000.

 

Enforcement began in February 2018 and the IRS has been actively alerting the State Department of individuals who owe more than the threshold. The IRS expects to have a complete list of taxpayers who fall into this category to the State Department by the end of the year. As of now, the State Department has only been denying Passport applications and has not revoked an active Passport. However, revocation could happen at any time and a taxpayer who tries to renew a Passport will be denied.

 

Individuals who owe the IRS unpaid taxes can contact Tracy Derteen, Esq. at (330) 253-9195 (tlderteen@bmdllc.com) to discuss all available options to address the tax liability or other tax matters.


Will Student-Athlete Collectives Survive NIL Changes?

By July 2025 the landscape of student-athlete funding will look nothing like the current landscape, so preparing now is a must. If you are a student-athlete, the parent of a student-athlete, a university/college, or “booster”, it behooves you to understand these evolving issues.

Ohio's Recent Rule Changes to Administration of Immunizations, Outpatient Pharmacy Delivery, and Mobile Response Services

The Ohio Board of Pharmacy (“BOP”) and Ohio Department of Mental Health and Addiction Services (“OMHAS”) recently posted notices of Ohio Administrative Code rule changes related to the administration of immunizations (BOP), outpatient pharmacy delivery services (BOP), and mobile response and stabilization services (OMHAS).

HOA Construction Project Do’s and Don’ts

Local regulators can approve new construction, but if a resident contacts their homeowners association there may be trouble. Fences, yard alterations, and backyard decks do not have to be such a hassle and a point of conflict. Find out general Do’s and Don’ts to help HOA residents avoid issues in this article by BMD Partner Scott Heasley.

New Ohio Recovery Housing Rules Take Effect January 1, 2025

Ohio’s new recovery housing rules, effective January 1, 2025, require certified community behavioral health providers to refer clients only to accredited recovery housing residences listed on the statewide registry.

SCOTUS to Weigh In on Medicaid Beneficiaries’ Right to Choose their Provider

The U.S. Supreme Court will hear arguments this spring on whether Medicaid beneficiaries have an enforceable right to choose their healthcare providers without state interference, as outlined in Section 1902(a)(23) of the Social Security Act. This case stems from a South Carolina petition challenging a Fourth Circuit ruling that blocked the state from terminating Planned Parenthood’s Medicaid provider agreement.