IRS Using Passport Travel to Enforce Tax Collections

The IRS has released new details in regards to the “Revocation or Denial of Passports in Cases of Certain Tax Delinquuencies.”  The law isn’t limited to criminal tax cases, or even those who are trying to flee the country.  It is going to be used as a way to enforce tax collections.

This is how the new process works:

If you have seriously delinquent tax debt, IRS can notify the State Department. The State Department generally will not issue or renew a passport after receiving certification from the IRS. The IRS has not yet started certifying tax debt to the State Department. The IRS says certifications will begin in early 2017, and the IRS website will be updated to indicate when this process has been implemented.

This is the new information from the IRS:

Delinquent tax debt is an individual’s unpaid, legally enforceable federal tax debt totaling more than $50,000 (including interest and penalties, but subject to an inflation adjustment) for which:

A notice of federal tax lien has been filed and all administrative remedies under IRC § 6320 have lapsed or been exhausted or a levy has been issued.

Before denying a passport, the State Department will hold your application for 90 days to allow you to:

  • Resolve any erroneous certification issuesMake full payment of the tax debt
  • Make full payment of the tax debt
  • Enter into a satisfactory payment alternative with the IRS

Passports and Delinquent Taxes

If you have overdue taxes, and are concerned about traveling overseas, you need to take action immediately.  Please contact our office to review your options.