How the IRS can take away your Passport

The IRS is responsible for collecting taxes in the United States. One of the tools at its disposal is the ability to revoke the passports of taxpayers who owe significant tax debts. While this authority has been in place for a few years, it has received increased attention recently as the IRS has increased enforcement action and is doing this more frequently.

How It Works

The IRS can certify a taxpayer’s debt to the State Department, which will then deny or revoke the taxpayer’s passport. The IRS will typically notify the taxpayer in writing before certification and provide them with an opportunity to contest the debt. If the debt is not paid or resolved, the IRS can then certify the debt to the State Department, which will notify the taxpayer of the impending passport revocation or denial.

What Happens if You need to Travel out of the Country

You will not be allowed to travel outside the US without a valid passport. You will need to resolve your back tax issues first.

What You Can Do to Prevent or Reverse This

If you owe back taxes and are concerned about the possibility of having your passport revoked or denied, there are steps you can take to avoid this outcome. If you are unable to pay the full amount owed, you may be able to set up a payment plan. Another option is to request an Offer in Compromise (OIC), which allows taxpayers to settle their tax debt for less than the full amount owed. To be eligible, you must show that you are unable to pay the full amount owed. Getting your account placed in Currently Not Collectible Status (CNC) is another option as well.

All of these options require you to be in compliance with the IRS and have your last 6 years of tax returns filed.

Finally, if you believe that the IRS has made an error in certifying your tax debt to the State Department, you can contest the debt by filing a Collection Due Process (CDP) hearing request. This will give you the opportunity to dispute the debt and present evidence in your defense.