Now the IRS has updated it website on February 6, 2017 entitled Revocation or Denial of Passport in Case of Certain Unpaid Taxes to state that while the IRS has not yet started certifying tax debt to the State Department. Certifications to the State Department will begin in early 2017 and this webpage will be updated to indicate when this process has been implemented.
If you have seriously delinquent tax debt, IRC § 7345 authorizes the IRS to certify that to the State Department. The department generally will not issue or renew a passport to you after receiving certification from the IRS.
Upon receiving certification, the State Department may revoke your passport. If the department decides to revoke it, prior to revocation, the department may limit your passport to return travel to the U.S.
Seriously delinquent tax debt is an individual's unpaid, legally enforceable federal tax debt totaling more than $50,000* (including interest and penalties) for which a:
- Notice of federal tax lien has been filed and all administrative remedies under IRC § 6320 have lapsed or been exhausted or
- Levy has been issued
Before denying a passport, the State Department will hold your application for 90 days to allow you to:
- Resolve any erroneous certification issues
- Make full payment of the tax debt
- Enter into a satisfactory payment alternative with the IRS
US citizens living abroad should ensure that their IRS tax affairs are in order to ensure that they do not have any issues with their US passport when traveling.
Read more at: Tax Times blog