Is Your Passport At Risk Of Being Revoked? (What You Need To Know)

We're all familiar with Benjamin Franklin's famous saying, "Nothing is certain but death and taxes." Even if you have plenty of good years ahead, don't expect to spend them jetting off to the world's most famous beaches or Europe's most popular cities if you have a large outstanding tax debt. That's because, in December 2015, Congress enacted the Fixing America's Surface Transportation (FAST) Act, which authorizes the Internal Revenue Service (IRS) to request that the U.S. State Department revoke passports of seriously delinquent tax debtors. So if you happen to owe Uncle Sam an outsized sum of money, put the brakes on your vacation because your passport could be at risk of being taken away.

How much debt do you need to owe the IRS for your passport to be at risk? Each year, the IRS adjusts the threshold for seriously delinquent tax debt to account for inflation. As of this writing, the threshold sits at $64,000, including penalties and interest. If this applies to you, don't fret — there are processes in place.

First, the IRS must have taken all administrative action, such as filing a Notice of Federal Tax Lien or issuing a levy. They then send Letter 6152, or Notice of Intent to Request U.S. Department of State to Revoke Your Passport, giving you 30 days to respond. After that, they issue Notice CP508C, notifying you that your seriously delinquent tax debt has been certified to the State Department. Only then may the State Department revoke or limit your passport — or deny an application or renewal.

If you're the recipient of any of these notices, don't panic. The first thing you'll want to do is check to see if the debt is legitimate. If you've already paid the debt but the IRS somehow missed it, send proof of your payment to the address listed on the CP508C notice.

The IRS can only request passport revocation for certain types of debt: Individual income taxes, trust fund recovery penalties, business taxes you are personally liable for, and some civil penalties. Verify that your debt falls into one of these categories. The IRS cannot revoke your passport for obligations such as child support, debts already in IRS-approved payment programs, or debts covered under innocent spouse relief. Additionally, soldiers serving in active combat zones or in contingency operations are exempt.

Once you've determined the debt is valid, contact the IRS immediately. While it may feel intimidating, the IRS generally does not pursue revocation if you are making a good-faith effort to resolve your balance. If possible, pay the debt in full. Otherwise, you may qualify for an installment agreement, which allows you to pay over time. Taxpayers who can demonstrate financial hardship may be eligible for an Offer in Compromise, which allows them to settle for less than the full amount owed. If you are due a tax refund, the IRS will apply it to your balance, and you can arrange to pay any remaining amount. The most important thing is to get ahead of the situation. That way, your biggest worry is figuring out the easiest way to renew your passport – not how to reclaim it from the State Department.