Can I Get A Passport If I Owe Taxes – Today, Phil Hwang, Senior Tax Attorney at Optima Tax Relief, discusses how a tax refund can affect your travel plans, whether it’s renewing your passport or getting one for the first time.

You may be wondering what your passport has to do with taxes. The IRS works with state departments to prevent serious tax delinquents from leaving the country. Actions may include refusing to accept the passport application, refusing to renew the passport or canceling the passport.

Can I Get A Passport If I Owe Taxes

Can I Get A Passport If I Owe Taxes

So what is a serious delinquent tax account? This amount may change from year to year, but in 2023, a tax balance of $59,000 or more will be considered a serious delinquency. This amount includes penalties and interest.

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If your passport is canceled or your passport application or renewal is refused, the tax debt must be settled before your travel rights can be restored. To do this you need:

Remember, always do something to solve the problem. If you don’t know where to start, get help from an accountant.

Tune in next Friday for Ask Phil where Phil talks about taxes and real estate.

If your travel privileges have been revoked due to a tax refund, contact us today for a free consultation

You May Be Denied A Passport If You Owe The Irs Money

A passport is an important travel document that allows people to explore new worlds, visit foreign countries and experience different cultures. However, the benefits of having a passport come with certain responsibilities, one of which is meeting financial obligations to the government. In this blog post, we explore whether you can get or renew a passport if you owe tax.

Many people are surprised to learn that tax refunds affect their ability to obtain and renew passports. IRS oversight of this privilege is another way to encourage taxpayer compliance. If the IRS deems your tax debt to be a “substantial delinquency,” it reserves the right to notify the State Department, which may revoke your passport or deny you a passport application or renewal. This move is not unexpected. If the IRS plans to contact the State Department about your taxes, you will be notified by IRS Notice CP508C. The State Department will notify you in writing of its plan to revoke your passport or deny your application for a passport.

According to the IRS, tax liabilities totaling more than $55,000, including interest and penalties, are considered serious delinquencies. At this point, the individual may have already been charged and a notice of federal tax lien has been filed.

Can I Get A Passport If I Owe Taxes

As with many other consequences of not paying taxes, the quickest and easiest way to reverse this behavior is to pay off the tax debt. However, paying down your debt below the “too high debt” threshold can help solve the problem. For those who can’t afford it, there are other options, including:

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On the other hand, there are some scenarios where a severe default status can be removed. It includes:

If you fall under one of the above scenarios, the IRS generally has 30 days to reverse the action and notify the State Department. In any case, it is important to take proactive steps to solve the problem. Seek help from tax professionals, explore refund options and contact relevant government agencies to find a suitable solution. Optima Tax Relief is a nationwide tax resolution firm with over a decade of experience assisting taxpayers in difficult tax situations. If you owe a lot to the IRS, you shouldn’t be planning to travel abroad anytime soon: unpaid tax payments could cause the State Department to revoke your passport or deny your application for a new passport.

But before you start unpacking, here are three things you need to know if you want to avoid sending your passport on the wrong vacation, according to tax experts.

Eli Knopf, a tax attorney and CPA with Frost & Associates in Annapolis, Maryland, says it’s bad enough when the IRS comes after your passport. First, your delinquent tax payments must exceed $52,000, including interest and penalties. Second, the account must be in “serious delinquency,” which means it must be with you when the IRS tries to collect payments.

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Avoid headaches by responding when the IRS contacts you, Knopf says. “Typically, when you file a tax return and have a balance, there’s a series of notices the IRS gives you,” he said. “A notice of federal tax lien has been filed and your right to appeal has been granted, or a notice of intent to levy has been filed and your right to appeal has been granted. Exceed that and you’re committing a serious crime.”

It could take months to get to that point, but if it does, the IRS can tell the State Department to deny your passport application or revoke your current passport, Knopf said.

A government official may not come to your home to collect your passport, Knopf said. But if you give, you can’t get it back.

Can I Get A Passport If I Owe Taxes

“You go to get a new page in your passport or it’s expired and you try to renew it – they might take it away or refuse to renew it,” he said. If you are abroad, the State Department may issue you a limited passport that is valid for your immediate return to the United States while your passport is suspended.

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A few exceptions to the rules protect your passport from red-eye and go-anywhere. Bankruptcy can also prevent, for example, the IRS from entering into a debt settlement agreement known as an offer in compromise. Innocent spousal support is effective in cases such as living in a federal disaster area, being a victim of tax-related identity theft, or demonstrating genuine financial hardship.

If you believe the IRS has flagged your passport in error, you can file a lawsuit in US Tax Court or US District Court.

But paying your taxes or signing up for a payment plan is an easy way out of passport hassles. The IRS offers partial programs that can help.

“If they’re negotiating with the IRS about it — if there’s an offer of compromise, or an installment agreement, or if they’re going through a forfeiture process, then the passport cancellation doesn’t go into effect,” James said. . Curtis is senior manager of international tax services at Hall & Company CPAs & Consultants in Irvine, California.

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If you’re hoping to fly to Paris next week, Knopf says your passport may not be ready in time. He cautioned that it could take weeks or months for the IRS to process all of these options. Additionally, the IRS has 30 days to ask the State Department to re-greenlight your passport.

If you’re behind on your state taxes, make a plan for it, Knopf says. Otherwise, you may have trouble renewing your driver’s license, vehicle registration or nursing license, real estate license, or professional license from another state.

If you purchase a product or register an account through a link on our website, we may receive compensation. By using this Site, you agree to our User Agreement and consent to the collection, recording and storage of your clicks, interactions and personal information by us, social media and other third party partners in accordance with our Privacy Policy. If you owe the IRS taxes and have outstanding balances, the government can use several legal remedies to pay your delinquent taxes. Read on to find out how this could affect you and your future travel plans. The IRS and State Department began enforcing a law passed in 2015 that requires the State Department to deny passports to taxpayers who owe the IRS more than $51,000 in taxes, penalties and interest. If the IRS issues a notice of federal tax lien, the dispute period has expired, or the IRS levies taxes, taxpayers who owe this much cannot get a new passport or renew their old passport.

Can I Get A Passport If I Owe Taxes

Before denying your passport, the State Department will hold your application for 90 days to collect the tax debt. To do this you:

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Consular Affairs (CA) is the public face of the State Department to millions of people around the world. U.S. Abroad Welfare and Protection of Citizens, Issuance of Passports and Other Documents to Citizens and Nationals, and U.S. CA is responsible for border security and facilitating legal travel to the country.

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John Pablo

📅 Born: May 15, 1985 📍 Location: New York City 🖋️ Writer | Financial Enthusiast Welcome to my corner of the web! I'm John Pablo—a finance enthusiast and writer passionate about making money matters simple and accessible.

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