Title: Can You Get a Passport If You Owe Taxes? What You Need to Know
It’s that time of year again – tax season. As many Americans gather their documents and prepare to file their taxes, some may be wondering if they can still obtain or renew their passport if they owe taxes to the IRS. The short answer is yes, but there are some important factors to consider.
According to the Internal Revenue Service (IRS), owing taxes does not automatically disqualify you from obtaining a passport. However, there are certain circumstances in which the IRS may notify the State Department of your tax debt, which could potentially impact your ability to travel internationally.
The IRS has the authority to certify delinquent taxpayers to the State Department for passport denial or revocation under the Fixing America’s Surface Transportation (FAST) Act. This provision allows the IRS to take action against taxpayers with seriously delinquent tax debt, which is defined as an outstanding federal tax debt of more than $54,000, including penalties and interest.
If you fall into this category, the State Department may deny your passport application or renewal until the debt is resolved. This can pose a significant challenge for individuals who need a passport for work or personal reasons.
So, what should you do if you owe taxes and need to apply for or renew your passport? The first step is to communicate with the IRS and work towards resolving your tax debt. This may involve setting up a payment plan, negotiating a settlement, or seeking assistance from a tax professional.
It’s important to be proactive and address your tax debt as soon as possible to avoid any potential delays or issues with your passport application. The IRS offers various options for taxpayers who are struggling to pay their taxes, including installment agreements, offers in compromise, and hardship waivers.
In some cases, you may be able to obtain a passport by providing proof that you are in the process of resolving your tax debt. This can include documentation of an existing payment plan or a pending offer in compromise with the IRS.
If your passport application is denied due to tax debt, you will receive a notice from the State Department outlining the reason for the denial and providing instructions on how to resolve the issue. It’s important to follow these instructions carefully and take the necessary steps to address your tax debt.
While owing taxes can complicate the passport application process, it is still possible to obtain or renew your passport with a tax debt. By working with the IRS and taking steps to resolve your tax debt, you can ensure that your travel plans are not disrupted.
In conclusion, owing taxes does not automatically disqualify you from obtaining a passport, but it can potentially impact your ability to travel internationally. If you owe taxes and need to apply for or renew your passport, it’s important to address your tax debt promptly and communicate with the IRS to find a resolution.
By taking the necessary steps to resolve your tax debt, you can ensure that your passport application is processed smoothly and that you can continue to travel without any disruptions. Remember, communication and proactive action are key when dealing with tax debt and passport applications.