Global Tax Insights
Don’t Risk Having Your Passport Revoked: Pay off Tax DebtsJune 24, 2019
Your summer vacation plans abroad could be put to a halt if you have unpaid tax debts. Don’t risk losing your passport due to delinquent tax debt!
Do you have a big summer vacation planned? Make sure any tax debts are paid off! Your passport could be denied or revoked if you have outstanding unpaid debts.
When is your passport at risk of being revoked?
When you have seriously delinquent tax debt, the IRS could deny your passport application or revoke your current passport.
What is considered seriously delinquent tax debt?
According to the IRS, seriously delinquent tax debt is an individual's unpaid, legally enforceable federal tax debt totaling more than $52,000 (including interest and penalties, adjusted annually for inflation) for which a:
- Notice of federal tax lien has been filed and all administrative remedies under IRC § 6320 have lapsed or been exhausted or
- Levy has been issued
There are some exceptions including…
The following people are not at risk of losing their passports:
- Anyone who has tax debt that meets the definition of seriously delinquent but is paying it in a timely manner with an IRS-approved installment agreement, with an offer in compromise accepted by the IRS, or a settlement agreement entered with the Justice Department (or has a pending request for any of these agreements with the IRS)
- Anyone who is in bankruptcy
- Anyone who is identified by the IRS as a victim of tax-related identity theft
- Anyone whose account the IRS has determined is not collectible due to hardship
- Anyone who is located within a federally declared disaster area
90 day hold
Before denying your passport application or revoking your current passport, the State Department will hold your application for 90 days to allow you to
- Resolve any erroneous certification issues
- Pay off the tax debt in full
- Enter a satisfactory payment arrangement with the IRS
What happens if your passport is denied or revoked?
The State Department will notify you in writing if your passport application is denied or your current one is revoked.
If you need to resolve passport issues right away for an upcoming international trip, you should call the IRS (1-855-519-4965). You can use an existing passport until you’re notified by the State Department that is has been revoked. The IRS will reverse your certification within 30 days of the date the tax debt is resolved and provide notice to the State as soon as possible.
Questions? Contact us.