The IRS has a method of 'last resort' to collect overdue taxes: Revoking your passport

Published On Aug 25, 2024, 10:00 AM

The IRS can revoke your passport if you have a "seriously delinquent tax debt," defined as owing more than $62,000 in federal tax liabilities, including penalties and interest. This law, which has been in effect since 2018, allows the IRS to report such debts to the State Department, which then may deny new passport applications or revoke existing passports. Experts suggest this is a last-resort tactic to prompt individuals to pay their taxes. Increases in enforcement mean more taxpayers are finding themselves caught off guard when trying to travel abroad, as the IRS sends notices that can easily be missed.

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The increased enforcement of tax collections and the potential for passport revocation could impact companies that operate in the travel or expatriate management sectors. These companies may see a decrease in customers who are deterred by fear of losing their passports due to tax issues.

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The IRS has a method of 'last resort' to collect overdue taxes: Revoking your passport

Aug 25, 2024, 10:00 AM

The State Department can deny a passport application or revoke an active passport if the IRS certifies a tax debt as "seriously delinquent."

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