Americans with delinquent tax debt of more than $51,000 will have passport applications denied or current passports revoked.
The IRS will certify the debt to the State Department for action. Before denying a passport, the State Department will hold applications for 90 days to allow individuals time to resolve the issues.
Passport denial and revocation due to delinquent tax debt began with the 2015 Fixing America’s Surface Transportation (FAST) Act, which included a provision allowing the IRS to request that the Secretary of State deny, revoke or limit a U.S. passport upon certification of a seriously delinquent tax debt (SDTD).
There are several options available to taxpayers to avoid getting the State Department involved. CPAs can help their clients determine the best course of action.