Can You Lose Your Passport If You Don’t Pay Taxes? Yes, if you have seriously delinquent tax debt exceeding $62,000, the IRS can revoke or deny your passport.

Ever wondered if you could lose your passport because of unpaid taxes? Well, I’ve been down that road, and let me tell you, it’s a wild ride. Here’s the scoop on how this works and what you need to know to avoid any surprises.

Traveling internationally is such a fantastic experience. But did you know that not paying your taxes could cost you your passport? Yep, it’s true. The IRS can step in and take away your ability to travel if your tax debt is seriously late.

It doesn’t happen overnight, so don’t panic just yet. The IRS must file a Notice of Intent to Levy and work through the administrative system before your passport is at risk. But if you owe over $62,000 in back taxes (including penalties and interest), you could be in trouble.

What Qualifies as Seriously Delinquent Tax Debt?

Threshold Amount: The debt must be $62,000 or more, including interest and penalties. This amount is adjusted annually for inflation.
Exceptions: Not all debts qualify. Exemptions include:
- Child support debts.
- Debts under an IRS-approved installment agreement.
- Debts where an offer in compromise has been accepted.
- Debts where a Collection Due Process hearing is scheduled.
- Debts under “innocent spouse relief.”
- Debts that are non-collectible due to hardship, identity theft, bankruptcy, or living in a federally declared disaster area.
- Military personnel serving in combat zones are also exempt.

The Process of Revocation

Notice of Intent to Levy: The IRS must first file a Notice of Intent to Levy.
Administrative Process: The case progresses through the administrative system.
Certification: If unresolved, the IRS certifies the debt to the State Department.
State Department Action: The State Department can then deny a passport application or revoke an existing passport.

Impact of State Taxes

This process applies to federal tax debts, not state taxes. Logan Allec, a certified public accountant, notes, “Since passports are issued by the federal government, owing state back taxes does not affect your ability to obtain, use, or renew your passport.”

Denial of New Passports

If you attempt to apply for or renew your passport after your tax debt has been certified, the State Department will inform you that you are ineligible for passport services. You will receive a 90-day grace period to resolve the issue with the IRS.

Out of the Country Situations

If you are out of the country when your passport is revoked, modern passports with electronic components will be updated to become invalid, barring you from international travel. However, the IRS can issue a one-time passport to allow your re-entry to the U.S.

Solution: How to Keep Your Passport Safe

So, how do you avoid this mess? Here’s what I learned:

Stay Informed: Know your debt status. The IRS won’t blindside you. They’ll notify you if your passport is at risk.
Payment Plans: Get on an IRS-approved installment plan. Even with debt, this keeps your passport safe.
Exceptions: If you’re in hardship, bankruptcy, or a disaster area, your debt might be non-collectible. Military personnel in combat zones are also exempt.

I found that staying proactive with the IRS saved me a lot of headaches. If you’re on a payment plan or have worked out a deal with them, your passport should remain unaffected.

Conclusion

While it is possible to lose your passport due to unpaid taxes, it requires a “seriously delinquent tax debt” and involves several steps before it reaches the point of revocation. By maintaining an active payment plan or similar arrangement with the IRS, you can avoid this situation. Always consult with a legal or tax expert to get detailed advice tailored to your specific circumstances.

Key Takeaways

Federal Debt: Seriously delinquent federal tax debt can lead to passport revocation.
Exceptions: There are several exceptions that protect certain taxpayers from losing their passports.
Resolution: Working out a payment plan with the IRS can prevent passport issues.
State Taxes: State tax debts do not impact your federal passport status.
Consult Experts: Always seek professional advice for personal tax issues.

Understanding these details can help you manage your tax obligations and retain your passport privileges.

Note: We recommend readers talk to legal or tax experts for more detailed answers when it concerns their own situations.