Getting a passport is often viewed as a relatively straightforward process, as long as you have all the necessary documentation and pay the required fees. However, what happens if you owe money to the Internal Revenue Service (IRS)? Can you still obtain a passport if you have outstanding tax debt?
The short answer is yes, you can still get a passport if you owe the IRS money. However, there are certain circumstances in which the IRS can take action that may impact your ability to travel internationally. Let’s take a closer look at how tax debt can affect your passport application and what steps you can take to ensure your travel plans are not disrupted.
According to the IRS, owing back taxes does not automatically disqualify you from obtaining a passport. In fact, the IRS does not generally share taxpayer information with the Department of State, the agency responsible for issuing passports. However, there are situations in which the IRS may notify the State Department that an individual is ineligible for a passport due to unresolved tax debt.
If you have a seriously delinquent tax debt, defined as an amount exceeding $54,000 including penalties and interest, the IRS may notify the State Department of your status. Once the State Department receives this notification, they have the authority to deny your passport application or revoke an existing passport. This is part of the Fixing America’s Surface Transportation (FAST) Act, which was passed by Congress in 2015 to help the IRS collect outstanding tax debts.
If the IRS has flagged your account as having a seriously delinquent tax debt, you will receive a Notice CP508C from the IRS informing you of this status. This letter will also include information on how you can resolve the debt to avoid any passport restrictions. It is important to act quickly upon receiving this notice to prevent any disruptions to your travel plans.
There are several options available to resolve your tax debt and regain eligibility for a passport. You can:
1. Pay the debt in full: If you have the means to do so, paying the outstanding tax debt in full is the simplest way to remove any passport restrictions. Once the debt is satisfied, the IRS will update your status and notify the State Department accordingly.
2. Enter into a payment plan: If you are unable to pay the full amount upfront, you may be able to set up a payment plan with the IRS. By making regular payments towards your tax debt, you can demonstrate your commitment to resolving the issue and potentially avoid passport restrictions.
3. Request an Offer in Compromise: In some cases, the IRS may be willing to accept an Offer in Compromise, which allows you to settle your tax debt for less than the full amount owed. This option is usually reserved for individuals who are facing financial hardship and are unable to pay their tax debt in full.
4. File for bankruptcy: If you have filed for bankruptcy, your tax debt may be discharged as part of the process. However, it is important to consult with a tax professional to understand the implications of bankruptcy on your tax debt and passport eligibility.
It is important to note that resolving your tax debt does not guarantee immediate reinstatement of your passport eligibility. Once you have taken steps to address the outstanding tax debt, you will need to request that the IRS notify the State Department of your updated status. This process can take time, so it is recommended to start early if you have travel plans on the horizon.
In conclusion, owing money to the IRS does not automatically disqualify you from obtaining a passport. However, individuals with seriously delinquent tax debts may face restrictions on their ability to travel internationally. By taking proactive steps to resolve any outstanding tax debt, you can ensure that your passport remains valid and your travel plans are not disrupted. If you have received a Notice CP508C from the IRS, it is important to act promptly to address the issue and prevent any passport restrictions.
