Many travelers may not be aware that ignoring a large tax bill could result in the federal government revoking their passport. In recent years, the enforcement of this consequence has become more frequent, leaving individuals stranded without the ability to travel overseas.
Federal law requires the IRS and Treasury Department to inform the State Department of any American with a “seriously delinquent tax debt.” This debt threshold, which was over $62,000 in 2024, includes total federal tax liabilities, penalties, and interest. The State Department will typically refuse to issue a new passport and may revoke or limit an existing one in cases of serious tax delinquency.
The revocation of a passport is considered a “last resort” enforcement mechanism by the government to collect unpaid taxes. If these debts are not resolved, travelers may not be able to take trips overseas or may have to return to the U.S. until their tax case is resolved. This action can significantly impact individuals, especially those who travel abroad for business or pleasure.
Experts have seen an increase in tax enforcement efforts related to passports over the past few years. Individuals with overdue tax debts may find it challenging to travel internationally until their financial obligations are met. The collection effort involving passport revocation has proven effective in getting taxpayers to contact the IRS and address their outstanding debts.
Revoking a passport is not the government’s initial method for collecting overdue tax debts. The IRS must have exhausted all other collection activities before taking such action. Various courts have upheld the government’s constitutional right to revoke passports to collect tax debts, as demonstrated in recent legal cases challenging this enforcement mechanism.
Before revoking a passport, the IRS must certify a tax debt as seriously delinquent and alert the State Department. Taxpayers will receive a notice outlining the potential implications of this classification. Individuals have the opportunity to resolve their tax debts by paying in full, entering into a payment plan, or making a compromise agreement with the IRS. Failure to address the debt may result in a passport denial or revocation.
In some cases, taxpayers may be caught off guard when their passport is denied or revoked while traveling. Incorrect addresses on file, outdated contact information, or lack of awareness about overdue taxes can lead to unexpected passport issues. It is essential for individuals to stay informed about their tax obligations to avoid such surprises.
The risk of losing your passport due to unpaid taxes is a serious consequence that travelers should be aware of. The enforcement of this measure by the federal government underscores the importance of addressing tax obligations promptly to avoid travel restrictions and financial repercussions. Travelers must stay informed about their tax liabilities and take proactive steps to resolve any outstanding debts to maintain their ability to travel freely.