Can the IRS Revoke My Passport?

The IRS can revoke your passport in certain circumstances. However, the agency does not do this directly. Instead, if the requirements have been met, the IRS will certify your tax debt to the U.S. State Department and they revoke or deny you a passport. To prevent this from happening or get your passport back if you lost it, it is best to contact an experienced tax attorney for guidance.

When Can the IRS Revoke My Passport?

You must have a “seriously delinquent tax debt” in order to have your passport revoked. This is defined as “an individual’s unpaid, legally enforceable federal tax debt (including interest and penalties) totaling more than $55,000 (adjusted yearly for inflation).” If you have met the threshold, the IRS must then file a “Notice of Federal Tax Lien” or issue a levy for that debt before certifying the debt to the U.S. State Department.

The IRS can certify tax debts for U.S. individual income taxes, Trust Fund Recovery Penalties, business taxes for which the individual is liable, and other civil penalties.

What Action Will the U.S. State Department Take Against Taxpayers?

After receiving certification from the IRS, the State Department may revoke your current passport or deny issuance or renewal of a passport. If you’re overseas, the State Department may issue you a limited validity passport good for direct return to the United States.

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

• Resolve any erroneous certification issues;
• Make full payment of the tax debt; or
• Enter a satisfactory payment arrangement with the IRS.

Are There Exceptions to the Law Allowing Passport Revocation?

The IRS will not certify tax debts to the State Department where:

• The taxpayer and the IRS have entered into an installment agreement or offer in compromise and the payments are being made in a timely manner;
• The debt has been fully satisfied or becomes legally unenforceable; or
• The debt has been suspended under the innocent spouse rules.

In addition, the IRS will not certify taxpayers as owing a seriously delinquent tax debt if they are bankrupt, victims of tax-related identity theft, determined to be in “currently not collectible” status due to hardship, or located within a federally declared disaster area. In addition, individuals with pending requests for an installment agreement or offer in compromise or who have an IRS accepted adjustment that will satisfy the debt in full won’t face revocation. Note that the IRS will postpone certification while an individual is serving in a designated combat zone or participating in a contingency operation.

How Can You Stop Passport Revocation?

It is important to try to resolve tax debts before they get to the passport revocation stage. You will get multiple notices that you owe taxes, and that the IRS will take action against you. Respond promptly. If your passport was taken, you can obtain a reversal once you address your tax matter.

You should consult a tax attorney as soon as possible to either challenge the tax assessment or settle your tax debt. An experienced IRS tax lawyer can help evaluate the best option for your situation and advocate on your behalf to resolve your dispute. If you owe back taxes, contact us for a consultation.