You’re planning your dream vacation, a beautiful 5-star hotel hand-picked in Palau: dreaming of its crystal-clear waters teeming with purple and pink jellyfish, a surreal and serene experience with a mai-tai in one hand, other hand shading your eyes from the blue-white rays of the sun. Ah.

When all of a sudden, you’re snapped back to reality. Some tax debts from 5 years you never paid have finally caught up to you.

When you go to renew your passport, they deny your application. What happened?

Can You Get a Passport If You Owe Back Taxes?

The question doesn’t have a simple yes or no answer. Passport denial is a lever the IRS can pull if they’ve found you particularly uncooperative in paying your taxes.

However, obtaining a passport or going through a passport renewal isn’t prohibited while you owe taxes.

The IRS may block your passport status only if you owe a significant debt and other interventions have not worked. 

How Much Can I Owe in Taxes and Still Get a Passport?

As of 2024, the IRS may certify tax debt to the State Department only if an individual's liability exceeds $62,000. The liability threshold includes the individual’s back taxes, penalties, and accrued interest. The figure is also subject to annual adjustments for inflation, which can change the amount owed every year.

Even at this threshold, the IRS may decide not to implement the measure if the taxpayer is making a good-faith effort to pay back their taxes owed. Such an effort will generally include one of the following:

1. A confirmed offer in compromise, an agreement to pay off a lower amount of tax debt overall.

2. Regular payments on an installment agreement.

3. Is deemed “currently not collectible” due to hardship.

Can You Travel Internationally if You Owe Taxes?

A common question, your passport doesn’t automatically become voided when you owe taxes, even past the $62,000 threshold.

Therefore, international travel is often still possible even for those with substantial tax debts. The critical factor here is whether or not the IRS has certified the debt to the State Department. Absent such certification, your access to international travel will remain unrestricted.

However, if the IRS does choose to certify you have a seriously delinquent account to the State Department (that is, at least $62,000 owed) and it is approved, consequences may include passport revocation or limitations.

In certain instances, individuals may be issued a restricted passport solely for direct return to the United States. 

Criteria for IRS Debt Certification to the State Department

The IRS does not indiscriminately certify all tax debts. We said earlier that it is a lever they will only pull for seriously delinquent accounts. Specifically, those for whom the following is true: 

1. Persistent non-response to payment notices and demands

2. Failure to enter into an installment agreement or offer in compromise

3. Non-compliance with existing payment agreement terms

4. Neglect to file for innocent spouse relief when applicable

Not all of these factors must be present for the IRS to file to certify, but generally speaking, these are the criteria upon which the IRS relies to decide whether passport revocation or limitation is a good disincentive in this case.

Circumstances That Can Prevent Certification

Certain situations exempt tax debts from State Department notification:

1. Active participation in an installment agreement or offer in compromise

2. Suspension of collection due to innocent spouse relief request

3. Pending Collection Due Process hearing

4. Ongoing bankruptcy proceedings

These exemptions highlight the importance of engaging with the IRS and utilizing available tax resolution options.

Strategies to Prevent Passport Denial

Here are the steps you can take to avoid any passport-related complications due to your tax debt:

1. Full Payment: Settling tax liability in full is the most direct method to avoid passport issues.

2. Installment Agreement: If you cannot pay it back in full, you can establish a payment plan with the IRS to pay your tax debt off over time.

3. Offer in Compromise: In many cases, negotiating a reduced settlement is possible for those facing financial hardship.

4. Collection Due Process Hearing: If you dispute the amount of the debt, requesting a hearing can halt certain consequences, like passport denial.

5. Maintain Communication: Simply engaging in regular contact with the IRS can often prevent escalation to debt certification.

The Fastest Way to Get Your Passport Back

If you absolutely need your passport in the near future due to emergency circumstances, the IRS provides a process for expedited decertification (see Imminent travel plans). 

To do so, you’ll likely have to plan a full debt resolution with the IRS or enter into a payment agreement, then you can request an urgent decertification. 

Professional Guidance

Given the complexity of tax debt resolution and its potential impact on passport status, consulting with a qualified tax professional may be prudent. Expert guidance can facilitate navigation through tax resolution processes and help preserve travel capabilities.

Conclusion

Owing back taxes does not disqualify you from obtaining a passport. Passport denial and revocation are only used as a last resort by the IRS in cases of extreme tax delinquency. 

With proper management of your tax obligations and keeping lines of communication open with the IRS, you will likely never face this consequence, so there is typically no need to worry about it.