If you owe significant back taxes, your next trip could be at risk. Under the IRS’s passport revocation policy, travelers with delinquent debts over $62,000 might find their passport applications denied—or worse, have their passport revoked altogether.
The Origins of Passport Revocation for Tax Debts
The roots of this policy go back to the Fixing America’s Surface Transportation (FAST) Act of 2015. While it might seem odd that a transportation bill affects passports, this law empowered the IRS to notify the State Department about taxpayers with “seriously delinquent” tax debts.
What Qualifies as “Seriously Delinquent”?
For a tax debt to be classified as “seriously delinquent,” it must exceed $59,000, including penalties and interest. This figure is adjusted annually for inflation, and in 2024, it has been updated to $62,000. The debt must also be enforceable, meaning the IRS has filed a lien or levy against the taxpayer. If you’re in this boat, you might want to rethink those international travel plans.
The Process of Passport Revocation
The IRS doesn’t just snap its fingers and revoke your passport overnight. The process starts with the IRS certifying your debt to the State Department. After certification, the State Department has the authority to deny any new passport applications or renewals, or even revoke an existing passport.
Who Is Most at Risk?
Not every taxpayer with a debt is at risk of losing their passport. The IRS focuses on those whose debt crosses the seriously delinquent threshold. However, if you’re paying your debt through an IRS-approved installment agreement or if your debt is under appeal, you’re generally safe from passport-related penalties.
The Impact on Americans Abroad
The stakes are especially high for Americans living overseas. A revoked passport can leave them stranded or force them to return to the U.S., potentially uprooting their lives and careers. If you’re already abroad, you could be issued a limited passport that only allows you to return to the U.S.
Why Is This Happening?
The IRS’s move to use passport revocation as a tool isn’t just about collecting taxes—it’s about creating leverage. According to tax attorney Stephen A. Weisberg, this policy is “a powerful motivator” for taxpayers who might otherwise ignore their debts. The prospect of losing the ability to travel can push people to settle their tax debts faster than any other penalty.
Legal Perspectives and Controversies
While the policy is effective, it has its critics. Some lawmakers, like Representative Carolyn Maloney (D-NY), argue that the measure could disproportionately impact certain groups. Maloney has called for more safeguards to ensure that taxpayers have ample opportunity to resolve their debts before such drastic measures are taken.
Offer in Compromise
For those who simply can’t afford to pay, the IRS offers an “Offer in Compromise.” This allows taxpayers to settle their debt for less than the full amount owed, provided they meet certain criteria. While it’s not easy to qualify, it can be a lifeline for those facing insurmountable debt.
What Happens After a Passport Is Revoked?
If your passport is revoked, it’s not the end of the road. The IRS will reverse the certification once you’ve settled your debt or made arrangements to do so. However, getting your passport back can take time—sometimes up to 30 days—so it’s crucial to act quickly if you’re planning any international travel.
Judicial Review and Challenges
If you believe the IRS has wrongly certified your debt, you have the right to challenge the decision in U.S. Tax Court or District Court. However, this process can be lengthy and complicated, so legal counsel is often necessary.
Emergency Situations
In cases of emergencies, such as a medical necessity or urgent family matter, the State Department can issue a passport despite a seriously delinquent tax debt. However, these cases are rare and must be well-documented.
How Effective Is This Policy?
Since the policy’s implementation in 2018, over 400,000 taxpayers have been notified that their passports were at risk. This shows that the IRS is serious about using every tool at its disposal to collect taxes, even if it means grounding you.
Don’t Wait to Take Action
The IRS’s passport revocation policy is a wake-up call for taxpayers with overdue debts. It’s a drastic measure, but it’s one that’s here to stay. If you’re in the danger zone, now is the time to act—whether that means setting up a payment plan, applying for an Offer in Compromise, or consulting with a tax professional.
Read More
18 Countries That Don’t Want American Visitors
It’s time for a reality check, American travelers. As you pack your bags and head overseas, ready to stamp your passport, it’s becoming glaringly obvious that not every destination is thrilled to see you. 18 Countries That Don’t Want American Visitors
18 High-Crime Cities in the US You Should Avoid
American cities promise rich culture and unforgettable experiences, but rising crime rates can catch travelers off guard. This guide helps you stay safe while fully enjoying your adventures. 18 High-Crime Cities in the US You Should Avoid
What Cruise Lines Don’t Want You to Know: 20 Candid Insights
Thinking about booking a cruise for your next getaway? Let’s have a real talk first. While cruising might seem like a breezy way to see the world, there are a few not-so-sunny truths that might make you reconsider. What Cruise Lines Don’t Want You to Know: 20 Candid Insights
Featured Image Credit: Pexels / Matthew Turner.
The content of this article is for informational purposes only and does not constitute or replace professional advice.
The images used are for illustrative purposes only and may not represent the actual people or places mentioned in the article.
For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
Tips for Trip Success
Book Your Flight
Find an inexpensive flight by using Kayak, a favorite of ours because it regularly returns less expensive flight options from a variety of airlines.
Book Your Hotel or Special Accommodation
We are big fans of Booking.com. We like their review system and photos. If we want to see more reviews and additional booking options, we go to Expedia.
You Need Travel Insurance!
Good travel insurance means having total peace of mind. Travel insurance protects you when your medical insurance often will not and better than what you get from your credit card. It will provide comprehensive coverage should you need medical treatment or return to the United States, compensation for trip interruption, baggage loss, and other situations.Find the Perfect Insurance Plan for Your Trip
PassingThru is a participant in the Amazon Services LLC Associates Program. As an Amazon Associate I earn from qualifying purchases.
To view PassingThru’s privacy policy, click here.
