In recent years, efforts to enforce tax payments through passport revocation have been on the rise. The federal government now has the authority to revoke or limit a traveler’s passport if they have a seriously delinquent tax debt. This measure is considered a last resort to collect unpaid tax levies, according to experts in the field.
If a taxpayer’s debt exceeds the threshold of $62,000, which includes federal tax liabilities, penalties, and interest, their passport may be revoked or limited. This can have significant consequences for travelers, as they may be unable to take trips overseas until the debt is resolved. Expats and business travelers who rely on their passports for work may be forced to return to the U.S. until their tax case is resolved.
Before revoking a passport, the IRS must have exhausted all other collection activities, such as notices of federal tax liens. Various courts have upheld the government’s ability to revoke passports to collect tax debts as constitutional. The State Department sends a notice outlining the implications of a seriously delinquent tax debt before revoking a passport, giving the taxpayer an opportunity to resolve the debt.
Sometimes taxpayers are caught off guard by passport revocation when traveling, as they may not be aware of the debt due to communication issues with the IRS. For example, incorrect addresses on file can result in taxpayers missing important notices about their tax debt until they show up at the airport and are denied a passport.
Ignoring a big tax bill can have serious consequences for travelers, as their passports may be revoked or limited if they have a seriously delinquent tax debt. It is essential for taxpayers to stay informed about their tax obligations and work with the IRS to resolve any outstanding debts to avoid the risk of having their passport revoked. Travelers should be aware of the potential consequences of unpaid tax debts and take proactive steps to address any issues with the IRS to prevent travel disruptions.