The IRS and the Department of State have joined forces in battling outstanding tax balances. Within the next couple of months, the IRS will begin notifying the Department of State of negligent taxpayers and their debts. Upon receiving said notice, the State Department will have the authority to revoke the taxpayer’s passport or deny a passport in the making or renewal process.
While this passport-revoking authority was granted back in January of 2016, the IRS just recently updated its website to reflect this new power. They have not yet begun forwarding these notices to the Department of State, but they are sure to start within a month or two.
Who will be affected?
Those taxpayers with taxes of over $50,000.00 are eligible to have their cases referred to the Department of State if a notice of federal tax lien has been filed or a levy has already been issued.
When will the IRS begin transferring cases to the Department of State? Taxpayers should remain vigilant as to the postings on the IRS’ website, particularity the section entitled “Revocation or Denial of Passport in Case of Certain Taxes,” a link to which is copied below. As of now, the site is merely for informational purposes, and the IRS will update the page once the process commences.
Is there anything that can be done to avoid the State Department’s involvement? Yes; take a step toward settling your balance with the IRS. Those taxpayers who are making regular payments to the IRS under either an Installment Agreement or Offer-in-Compromise do not need to worry.