Can the IRS Really Take Your Passport?

Yes — in certain situations, the IRS can notify the U.S. Department of State to deny, revoke, or limit a taxpayer’s passport because of unpaid federal tax debt.

This typically applies when a taxpayer has “seriously delinquent tax debt,” which is currently more than approximately $65,000, including penalties and interest. Once certified, the State Department may deny a new passport application, refuse a renewal request, or place restrictions on an existing passport.

Many taxpayers are surprised to learn that unpaid tax balances can eventually affect international travel. In most cases, the IRS will first issue multiple notices and attempt collection efforts before passport certification occurs.

The good news is that taxpayers who are actively working with the IRS may avoid certification. Resolution options can include:

• Installment Agreements;


• Offers in Compromise;


• Currently Not Collectible status; or


• Other approved relief programs.

If the IRS certifies a taxpayer’s debt, it generally issues Notice CP508C. Certification can often be reversed once the taxpayer resolves the balance or enters into an approved payment arrangement.

The longer tax debt goes unresolved, the more penalties and interest continue to grow — and the more aggressive IRS collection actions may become. Addressing the issue early is often the best way to protect your options and avoid unnecessary complications.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.