If You Owe Taxes, Can You Get a Passport?
As tax season approaches, many Americans are starting to gather their financial documents and calculate how much they owe to the government. For some, this time of year can be stressful as they realize they owe more than expected. One common question that arises during this time is whether or not having unpaid taxes can affect one’s ability to obtain or renew a passport.
The short answer is yes, if you owe taxes, you may have trouble getting a passport. The Internal Revenue Service (IRS) has the authority to notify the U.S. Department of State of individuals who have a seriously delinquent tax debt. According to the IRS, a seriously delinquent tax debt is an unpaid, legally enforceable federal tax debt of more than $54,000 for which a notice of federal tax lien has been filed.
Once the IRS notifies the Department of State of an individual with seriously delinquent tax debt, the State Department is required to deny or revoke that person’s passport. This can be a major inconvenience for those who need a passport for travel or work purposes. However, there are steps that can be taken to resolve the issue and regain the ability to obtain a passport.
One option is to pay off the tax debt in full. This will not only satisfy the IRS and allow them to remove the seriously delinquent tax debt designation, but it will also ensure that the individual does not accrue any additional penalties or interest on the unpaid taxes. Additionally, once the tax debt is paid off, the individual can reapply for a passport without issue.
Another option is to enter into a payment plan with the IRS to gradually pay off the tax debt over time. This can be a more manageable option for individuals who are unable to pay the full amount upfront. By entering into a payment plan, the individual can show the IRS that they are taking steps to address the tax debt and may be able to avoid having their passport denied or revoked.
It’s important to note that not all tax debts will result in a denial or revocation of a passport. For example, tax debts that are being paid in a timely manner through an installment agreement or offer in compromise are not considered seriously delinquent. Additionally, individuals who are in bankruptcy proceedings or victims of tax-related identity theft are also exempt from having their passport denied or revoked.
In conclusion, owing taxes can indeed impact one’s ability to obtain or renew a passport. It’s crucial for individuals with seriously delinquent tax debt to address the issue promptly in order to avoid any disruptions in their travel plans. By working with the IRS to pay off the debt or enter into a payment plan, individuals can regain their passport eligibility and avoid any further complications. Remember, it’s always better to be proactive and address tax issues before they escalate and impact other areas of your life.
