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Understanding the IRS Rules on Passport Revocation for Tax Debt

If you have unpaid taxes, you might be at risk of losing your passport. The IRS has the authority to report seriously delinquent tax debt to the U.S. State Department, which can lead to passport denial, revocation, or restrictions. 

This rule is part of the government’s effort to encourage tax compliance and ensure that individuals with significant tax debt take steps to resolve their obligations.

In this guide, we’ll explain how tax debt affects your passport, what qualifies as “seriously delinquent tax debt,” and what tax relief options you have to prevent passport issues.

What is Seriously Delinquent Tax Debt?

The IRS defines seriously delinquent tax debt as unpaid federal taxes exceeding $59,000 (as of 2024), including interest and penalties. If your outstanding tax balance reaches this threshold, the IRS can certify your debt to the State Department, which may take one of the following actions:

• Deny your passport application or renewal – If you apply for a new passport or attempt to renew an existing one, the State Department may refuse to process it.
• Revoke your current passport – In some cases, the State Department may revoke your existing passport, limiting your ability to travel internationally.
• Restrict your travel – If you are already outside the U.S., you may be required to return to resolve your tax issues before being granted a new passport.

How Can You Prevent Losing Your Passport Due to Tax Debt?

If you’re worried about losing your passport over unpaid taxes, there are several tax solutions available to help you stay compliant:

1. Set Up an Installment Agreement

One way to avoid IRS certification is to enter into an installment agreement. This allows you to make monthly payments toward your tax debt rather than paying the full amount upfront. As long as you’re making payments, the IRS will not report your debt to the State Department.

2. Apply for an Offer in Compromise (OIC)

An Offer in Compromise (OIC) lets you settle your tax debt for less than the total amount owed. If you qualify, you can negotiate a lower payment with the IRS. While your OIC is under review, your tax debt will not be reported to the State Department.

3. Request a Temporary Delay Due to Financial Hardship

If you are facing financial hardship and cannot pay your tax debt, you may request Currently Not Collectible (CNC) status. This temporarily halts IRS collection efforts, including passport-related actions, until your financial situation improves.

4. Appeal the IRS Certification

If you believe the IRS has made a mistake in certifying your debt, you can appeal the decision. You may also appeal if you are actively resolving your tax debt through an installment plan, OIC, or other tax relief programs.

5. Pay Off Your Tax Debt in Full

The fastest way to remove the risk of passport revocation is to pay off your tax debt completely. Once you do so, the IRS will reverse the certification, and the State Department will reinstate your passport eligibility.

What Happens If Your Passport is Revoked?

If your passport is revoked due to unpaid taxes, you will receive a notice from the State Department. To regain your travel privileges, you must resolve your tax debt. 

Once you’ve taken action—whether through payment, an installment plan, or an appeal—the IRS will notify the State Department to remove the certification.

This process can take a few weeks, so it’s crucial to act quickly if your passport is at risk.

Seeking Professional Tax Assistance

If you owe a significant amount in unpaid taxes and are concerned about losing your passport, it’s best to consult with a tax attorney or tax relief specialist. These professionals can help you explore legal tax solutions and negotiate with the IRS on your behalf.

A tax attorney can assist with:

• Negotiating an installment agreement
• Submitting an Offer in Compromise
• Filing an appeal against an IRS certification
• Advising on financial hardship options

Conclusion: Take Action Before You Lose Your Passport

Unpaid taxes can have serious consequences, including the revocation of your passport. If you have a seriously delinquent tax debt, it’s important to act fast and explore your tax relief options. 

Whether through an installment plan, an Offer in Compromise, or financial hardship relief, there are ways to prevent passport restrictions and resolve your tax debt effectively.

If you’re unsure about your next steps, consult a tax professional today to find the best tax solution for your situation.

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