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Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses how owing back taxes can affect your travel plans, including renewing your passport or obtaining one for the first time. Here’s what you need to know about passports and taxes.

You might be wondering what your passport has to do with taxes. The IRS works with state departments to make sure that those with seriously delinquent tax accounts cannot leave the country. Actions that can be taken are a denial of application of a passport, denial of passport renewal, or even a revocation of your passport.  

So, what exactly is a seriously delinquent tax account? This amount can change year to year but in 2023, tax balances of $59,000 or more are considered seriously delinquent. This amount includes penalties and interest.  

If your passport gets revoked, or if your passport application or renewal is denied, you’ll need to resolve your tax debt before getting your travel privileges back. To do this, you’ll need to: 

  • Set up an installment agreement
  • Establish a hardship status, 
  • Getting an offer in compromise accepted by the IRS, or 
  • Pay your tax debt in full 

Now you know how passports and taxes are linked. Remember, always do something to help resolve the issue. If you’re not sure where to start, consult a tax professional for help. 

Tune in next Friday for another episode of “Ask Phil” where Phil will talk taxes and real estate. 

If Your Travel Privileges Were Revoked Because of Back Taxes, Contact Us Today for a Free Consultation