If you owe taxes to the IRS, you may wonder whether you can still apply for or renew your passport. The answer isn’t always straightforward – unpaid taxes can have serious consequences, including possibly having your passport denied or revoked. The IRS works closely with the U.S. State Department to enforce tax laws, especially in cases where individuals owe a significant amount of tax debt. In this article, we’ll explain how IRS passport revocation works, the steps you can take to resolve your tax debt, and how Tax Workout Group can help you regain control over your passport and travel plans.
IRS Passport Denial and Revocation: How Unpaid Taxes Can Impact Your Travel Plans
The IRS has the authority to notify the State Department when an individual owes what is considered a “seriously delinquent tax debt.” As of 2024, this threshold stands at $62,000 or more in unpaid taxes, including penalties and interest, for which the IRS has filed a Notice of Federal Tax Lien or issued a levy to collect the debt, and the taxpayer has exhausted all administrative remedies. If you owe seriously delinquent tax debt, the IRS will send a notice to the State Department, which can then take action to deny or revoke your passport.
Overview of IRS Regulations:
- Seriously Delinquent Tax Debt: The IRS defines this as $62,000 or more in unpaid taxes, including penalties and interest. In addition, a tax lien must have been filed for this amount, and the taxpayer’s administrative rights for challenging the filing of the lien must have been exhausted or expired, or a levy must have been made for this tax debt. These events trigger the process for IRS passport revocation or denial.
- Notification Process: Once the IRS identifies the tax claim as “seriously delinquent,” it sends a certification to the State Department, which may deny your passport application or revoke an existing passport. Taxpayers will also receive notice CP508C mailed to their last known address (Letter 6152 in the case of a revocation).
- State Department’s Role: The State Department acts on the IRS certification, revoking or denying passports to those with seriously delinquent tax debt.
Impact on Passport Applications and Renewals:
- Passport Denial: If you apply for a passport and the IRS has certified your tax debt as seriously delinquent, your application will likely be denied.
- Passport Revocation: If you already have a passport, the State Department may revoke it, meaning you cannot travel internationally until the tax issue is resolved.
- Exceptions: There are a few exceptions to these rules for emergency travel or humanitarian situations.
Key IRS Requirements and Revocation Triggers:
- Debt Threshold: Seriously delinquent tax debt starts at $62,000.
- Enforced Collection: Tax lien recorded and exhaustion of administrative review rights or tax levy.
Steps to Take If You Face IRS Passport Denial or Revocation Due to Unpaid Taxes
If you’re facing IRS passport revocation or are at risk of denial due to unpaid taxes, there are steps you can take to resolve the situation and restore your travel eligibility.
Immediate Actions to Consider:
- Check Your Tax Status:
Before doing anything, find out if you owe back taxes. You can access your tax records through the IRS’s online tools or by contacting the IRS directly. Look for any outstanding amounts classified as “seriously delinquent.” - Contact the IRS:
If you owe taxes, contact the IRS and verify the amount of the tax debt. Request details on the amount owed, any applicable penalties, and interest. You can also inquire about the steps necessary to address the debt before your passport is denied or revoked.
Resolving Tax Debt:
- Payment Plans and Pending Settlement Offers: The IRS offers several payment options to resolve your debt. An Installment Agreement allows you to make regular monthly payments over time. Alternatively, an Offer in Compromise lets you settle your tax debt for less than the total amount owed if you qualify based on your financial situation.
- Disputing the Debt: If you believe your debt is incorrect or unfairly classified as “seriously delinquent,” you can dispute it. The IRS has an appeals process, and it may be possible to resolve the issue without paying the total amount, especially if you have a reasonable basis for the dispute.
- Tax-Bankruptcy: Upon filing for bankruptcy, which will discharge or eliminate your seriously delinquent tax debt, the IRS must decertify or reverse the certification with the State Department and restore your travel rights.
How Tax Workout Group Can Assist:
Tax Workout Group specializes in enforced collection defense representation, including IRS passport revocation. Our team can help you resolve your tax debt and restore your ability to travel freely.
- Tax Debt Resolution: Tax Workout Group can resolve your tax debt in multiple ways, including negotiating installment agreements, preparing and filing an Offer-In-Compromise, disputing the underlying tax claims and related penalties, and filing a tax bankruptcy. We will work expeditiously toward preserving your passport rights.
- IRS Tax Controversy, Tax Collection, and Tax-Bankruptcy Representation: If you’re dealing with IRS (or state taxing agency) tax claims and want to explore ALL your options, let the Tax Workout Group professionals outline all your alternatives.
- Passport Restoration Assistance: If your passport has already been revoked or you cannot renew your passport due to unpaid taxes, Tax Workout Group can help resolve the issue, ensuring you can travel again without worry.
Let Tax Workout Group Help You Avoid IRS Passport Denial or Revocation and Resolve Tax Issues
Unpaid taxes can significantly impact your ability to obtain, renew, and use a passport. The IRS has stringent rules, and if you owe $62,000 or more in back taxes, your passport may be revoked or denied. However, you can resolve your tax debt and regain your passport eligibility by taking the proper steps.
At Tax Workout Group, we understand the complexities of passport cases. Our team is here to help you resolve your tax debt and restore your passport eligibility. We offer various services to make the resolution process smoother and protect your travel rights.
Don’t let unpaid taxes ruin your travel plans. Contact Tax Workout Group today for a free consultation or more information on resolving your tax issues and avoiding IRS passport problems. Visit our Tax Controversy Practice page for details on how we can assist you in restoring your passport rights and resolving your tax debt with the IRS.