News

Is Your Tax Liability with the IRS Affecting Your Passport Application?

With summer right around the corner, many families are quickly making travel plans that
require their passports! However, your passport application may be held or rejected as the
IRS informs the State Department of any seriously delinquent tax balances. Don’t let this
happen to you by planning ahead!

A seriously delinquent tax debt is any unpaid or unresolved tax debt totaling over $50,000
consisting of individual income taxes, trust fund recovery penalties, any business taxes one
can be held personally liable for and any civil penalties. If you have a tax balance with the
IRS that is over $50,000 and have not contacted the IRS to pay it or make other payment
arrangements, then the IRS may certify your passport to the State Department. This means
that the State Department will hold your passport application for about 90 days pending
the resolution of your tax balance with IRS. If you do not resolve your tax debt with the IRS
within that 90-day window, your passport application can be rejected, and you will have to
re-apply.

Once your tax debt is resolved with the IRS, it is no longer considered seriously delinquent
and hence, the IRS will de-certify your passport and the State Department will issue or will
renew your passport. In order to resolve your tax debt with the IRS, you have to pay it in
full or make other arrangements to pay it over time. An offer in compromise or a status of
financial hardship can also resolve your tax balance and there are other options. Generally
speaking, your active passport will remain unaffected, but the IRS can always send a
request to the State Department to revoke your passport under certain circumstances. It is
time to resolve your tax balance with the IRS and we are here to help!

Many individuals only apply for a passport once their flights are booked, and their itinerary
is set and then, find themselves hastily working to get their passport application released
after the fact. If you have imminent international travel plans, you may be able to resolve
your matter with the IRS as quickly as a few weeks in order to receive your passport in
time to make your flight, but you have to act quickly! If you have an unresolved tax balance
with the IRS, please give the experienced attorneys at Hone Maxwell a call to discuss your
options!

Disclaimer: Hone Maxwell LLP articles and blogs are not intended as legal advice. Additional facts, facts specific to your situation or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.

Latest Post

SINGAPORE

12 Marina View #23-01
Asia Square Tower 2
Singapore 018961
+65 8648 3995

SAN DIEGO 

3465 Camino Del Rio South, Suite 400
San Diego, CA 92108
619.980.4476

TIJUANA

Centro Corporativo Dayco
Blvd. General Gustavo Salinas #11050
Suite 602, Col. Aviacion
22014 Tijuana, B.C., Mexico
+52 (664) 504 6415

Entering the U.S. Business Market

Download Our Free Guide

Foreign investors: Learn about options for opening a business and tax compliance in the U.S.