If you owe taxes to the IRS (Internal Revenue Service), you might wonder if it will affect your ability to get a passport. The short answer is: it depends. Sometimes, owing taxes can prevent you from getting or renewing a passport. However, this doesn’t apply to everyone who owes taxes.
Let’s break it down in simple terms to understand how it works and what steps you can take if you owe taxes and need a passport.
Can You Get a Passport If You Owe Taxes?
The rules about passports and taxes come from a law passed in 2015 called the FAST Act. Under this law, the IRS can notify the State Department if you have a “seriously delinquent tax debt.” If this happens, the State Department can deny your passport application or renewal.
They can even revoke (take away) your existing passport. The IRS has already filed a tax lien (a legal claim against your property) or issued a levy (a legal seizure of your assets).
What Happens If the IRS Flags Your Tax Debt?
If the IRS determines that you have a seriously delinquent tax debt, they will send you a notice (usually a CP508C letter) to inform you. This letter will explain that your debt has been reported to the State Department and that your passport may be at risk.
Once the State Department is notified, they can:
- Deny your application for a new passport.
- Deny your request to renew an expiring passport.
- Revoke your current passport.
What Should You Do If You Owe Taxes and Need a Passport?
If you owe taxes and need a passport, don’t panic. You can take steps to resolve your tax debt and protect your passport. Here’s what you can do:
Check Your Tax Debt Status
- First, determine how much you owe and whether the IRS has flagged your debt as “seriously delinquent.” You can check your IRS account online or call the IRS directly.
Pay Your Tax Debt in Full
- The easiest way to resolve the issue is to pay your tax debt fully. Once you’ve paid, the IRS will notify the State Department within 30 days. And your passport will no longer be at risk.
- Consider other options if you can’t pay the full amount immediately (see below).
Set Up a Payment Plan
- If you can’t pay your debt immediately, you can set up an instalment agreement with the IRS. If you make regular payments under an approved plan, the IRS won’t report your debt to the State Department.
Apply for an Offer in Compromise
- An offer in compromise is a program that allows you to settle your tax debt for less than the full amount you owe. If the IRS accepts your offer, your debt will be considered resolved. So, your passport won’t be at risk.
Request a Collection Due Process Hearing
- If you believe the IRS made a mistake or want to dispute your tax debt. You can request a Collection Due Process (CDP) hearing. During this process, the IRS will pause collection actions, including reporting your debt to the State Department.
File for Bankruptcy
- Sometimes, filing for bankruptcy can discharge (eliminate) your tax debt. If your debt is discharged through bankruptcy, the IRS will no longer consider it delinquent, and your passport won’t be at risk.
Contact the IRS
- Contact the IRS if you’re unsure about your options or need help resolving your tax debt. They can provide guidance and help you find a solution that works for your situation.
Can You Travel Internationally If You Owe Taxes?
You can still travel if you have a valid passport and your tax debt hasn’t been reported to the State Department. However, if your debt is flagged while you’re abroad, your passport could be revoked, and you might not be able to return to the U.S. until your debt is resolved.
Conclusion:
Owing taxes can be stressful, but it doesn’t have to ruin your travel plans. You can protect your passport and avoid unnecessary complications by proactively resolving your tax debt. If you’re unsure where to start, consider contacting a tax professional or the IRS for help.