Is It Possible to Lose Your Passport for Not Paying Taxes?

A passport is an incredible privilege that allows for international travel—it's important to remember that it is a privilege, not an inherent right. Therefore, it can be revoked, especially if you fail to pay your taxes.

According to the Internal Revenue Service (IRS), "Typically, the State Department will refrain from issuing passports to individuals with delinquent tax debts certified by the IRS. Additionally, they may reject a passport application or cancel an existing passport for a taxpayer."

Certainly, there are numerous conditions involved—being behind on your taxes doesn't automatically prevent you from traveling internationally. "This process isn't instantaneous, and taxpayers should be aware of that," says Morris Armstrong, an enrolled agent licensed by the Treasury, to Dinogo. "The IRS must file a Notice of Intent to Levy, and the case must navigate through the administrative channels. If you’ve submitted your latest tax return and have a significant balance due, you might be a year away from facing revocation threats."

However, we must first take a step back. Exploring the legal framework that empowers the IRS and State Department to revoke an existing passport or deny a passport application, one must have what is considered "seriously delinquent tax debt." So, what does this entail? "The threshold for this debt is $62,000, which includes interest and penalties," Armstrong explains. (Keep in mind this figure adjusts annually for inflation, so consult the IRS for the latest details if you're worried about your debt.)

It's not a straightforward figure, as there are exceptions.

"Fortunately, the IRS does not categorize the following as serious delinquent debt: child support, taxpayers adhering to an IRS-approved installment agreement, those who have had an offer in compromise accepted, debts linked to a scheduled Collection Due Process hearing (this is an option for taxpayers after receiving a Notice of Intent to Levy), and taxpayers seeking innocent spouse relief," Armstrong adds.

Armstrong also mentions that "the IRS will not certify any debts to the State Department if they are currently deemed non-collectible," whether due to hardship, identity theft, bankruptcy, or residing in a federally declared disaster area. Furthermore, he adds that "military personnel deployed in combat zones are also exempt from certification."

In brief, it’s actually somewhat challenging to qualify for passport revocation. "As you can see, you can still owe money to the IRS, but you need to be enrolled in an active payment plan or similar agreement," Armstrong explains. Once you set up an accepted plan with the IRS, your passport should remain secure.

It's also vital to highlight that this pertains solely to federal taxes, not state taxes. "Since passports are issued by the federal government, owing state back taxes does not impact your ability to obtain, use, or renew your passport," states certified public accountant Logan Allec, owner of the tax relief firm Choice Tax Relief, to T+L."However, since states govern other areas, like driver's licenses and professional licenses, owing state back taxes could lead to the loss of those state-granted privileges."

Is it possible for your passport to be revoked if you fail to pay taxes?

Yes, if you have "seriously delinquent tax debt," your passport can indeed be revoked—even if you are outside the country. Given that modern passports contain electronic elements, your passport will be rendered invalid, preventing any international travel. However, Armstrong notes that "the IRS does have some compassion, and a one-time passport may be issued to facilitate your re-entry into the U.S."

Can you be refused a new passport if you have unpaid taxes?

Yes—but, once again, this applies only if you have "seriously delinquent tax debt." "If you try to apply for or renew your passport after your tax debt has been certified to the State Department, they will send you a letter indicating that you are currently ineligible for passport services," explains Allec. "However, they provide a 90-day grace period for you to resolve your tax issues with the IRS, after which you can continue with your application."

Note: Dinogo advises readers to consult legal or tax professionals for more detailed guidance tailored to their specific situations.