How Tax Liabilities Can Affect Your Passport

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How Tax Liabilities Can Affect Your Passport

You’re probably already aware that tax liability can impact many aspects of your life. If you owe back taxes and you aren’t paying, the IRS can take some pretty drastic measures.

They can garnish your paycheck, take money from your bank accounts, place liens on your property, and even seize your property in extreme situations. They do this to collect your tax liability, and it’s not a fun situation to be in.

Still, some people aren’t fully aware of all the things in their lives that can be affected by tax liability—until they get a bit of a nasty shock at the worst possible time. For example, most people don’t know that tax liability can now affect their passports.

The IRS and State Department Are Working Together to Collect Taxes

Beginning in February 2018, the IRS started sending personal tax liability information to the State Department for people who are deemed seriously delinquent.

For you to be considered in serious tax delinquency, the following must be true:

  • You owe more than $51,000 in federal back taxes.
  • A notice of federal tax lien has already been filed, and all other efforts to get you to pay your taxes have been exhausted.
  • A levy has already been issued.

The IRS will now send your seriously delinquent tax information to the State Department, and your passport application can be rejected. If you already have a passport, your passport can be revoked.

If you are overseas at the time of the revocation, the State Department can issue you a temporary passport that only allows you to return to the United States.

Who Is Exempt from This Program?

If you do not owe over $51,000 in federal tax liability, you are not seriously delinquent. Other taxpayers currently in tax liability who will not be subject to this collections program are those who meet one of the following criteria:

  • They are making regular payments on an installment agreement.
  • They have made an offer in compromise and are following all requirements.
  • Collections have been stopped due to a request for innocent spouse relief.
  • A collection due process hearing has been scheduled.
  • The person is in bankruptcy.
  • The person is a victim of identity fraud.
  • The person is in Currently Not Collectible status.
  • The person is located in a federal disaster area.

Tax Help to Protect Your Passport

The IRS now has another tool to get you to pay your tax liability. Although the fact that the IRS can now cancel your passport is intimidating, all you have to do to keep this situation from happening to you is contact a tax attorney and ask for help.

Your lawyer will quickly examine your situation and match you with a solution that will put you out of the running for this extreme tax program. Reach out to W Tax Group to get your tax liability handled. Call 1-877-500-4930 or complete the form below to schedule your free tax liability analysis.

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