In cases of seriously delinquent tax debt, the Internal Revenue Service can take drastic measures to recover back taxes. Is it true that the IRS can revoke your passport for unpaid taxes? Below, our team at Levy & Associates, Inc. reveals what you need to know about unpaid taxes impacting your future travel.
If you don’t pay any or all of your owed federal taxes for a given year, the Internal Revenue Service can impose penalties. Unpaid taxes can affect your credit, and the agency may resort to wage garnishment and other payment arrangements. They may even pursue criminal charges in extreme cases.
But can the IRS revoke a passport for unpaid taxes? It’s possible. Those who carry seriously delinquent tax debt of more than $64,000 could lose their passport privileges.
When unpaid taxes, penalties, and interest reach this threshold, the IRS turns the case over to the State Department. Officials will intervene and may impose harsher penalties, including passport revocation.
Your passport may remain active even if you acquire a bit of debt. Some individuals enter into IRS agreements, which make them exempt from certain penalties. Exceptions also apply to those that the agency classifies as “Currently Not Collectible” amid financial woes.
What if you don’t have a passport? Until you address your debt, the State Department may issue a passport denial following your application for one.
You’ll know if your passport is at risk when you receive a CP508C notice. This document outlines your IRS certification of seriously delinquent tax debt and the State Department’s involvement. Upon receiving this taxpayer notification, you must respond accordingly to prevent your passport’s revocation.
If the State Department, after receiving notification from the IRS, revokes your passport for unpaid taxes, you’ll be unable to travel internationally, regardless of when the passport expires. You may be denied when applying for a new one if you fail to address your tax debt. The ideal way to avoid this situation is by taking the following steps:
Remember that your passport is at risk once you reach the $64,000 tax debt threshold. Keep track of your unpaid taxes and aim to relieve your debt before the IRS imposes harsher penalties.
Not only can the State Department and IRS revoke your passport for unpaid taxes, but they can also pursue criminal charges for delinquent debt. Whether you’re facing financial hardships or have trouble filing tax returns, Levy & Associates, Inc. can help you navigate your options.
Our team works with taxpayers in different situations to resolve tax issues and prevent penalties. Contact us today to consult a professional and explore suitable strategies. Submit our convenient online form or call 800-TAX-LEVY.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.