All You Need To Know About Passports And Tax Liabilities
If you have tax liabilities, you might be wondering, “If I owe the IRS, can I get a passport?” The short answer is no. The IRS can deny a passport if you owe more than $52,000 in back taxes. This is due to the Fixing America’s Surface Transportation (FAST) Act.
The act allows the IRS to work with the State Department to deny or revoke passports. Yet, there are options available to resolve your tax liabilities and get your passport back on track. In this blog post, we’ll explore what you can do if you owe the IRS and want to get or renew your passport.
If I Owe Taxes Can I Get a Passport?
Staying on the right side of the Internal Revenue Service (IRS) is crucial for a variety of reasons. This includes maintaining the ability to travel. The FAST Act lets the IRS inform the State Department about significant tax liabilities.
They might cancel or refuse a U.S. passport because of this. The law applies to individuals with tax liabilities of more than $52,000, including penalties and interest.
How the IRS Uses Passport Revocation
If your tax liabilities are high enough for passport trouble, the IRS informs the State Department.
But if you’re working on paying your tax liabilities, they might wait before taking that step, especially if you’re on a payment plan or an Offer in Compromise.
Tax Liabilities Threshold for Passport Revocation
Minimum Liabilities Amount
The minimum liabilities amount that could result in the revocation of your passport is $52,000 or more. If you find yourself in this situation, it’s crucial to take action. Address your tax liabilities to avoid potential travel restrictions.
Exceptions and Exemptions
If you’re paying your tax liabilities or on a payment plan, your passport is usually safe. In a disaster area, you might not face passport issues for tax liabilities.
Knowing the tax liabilities limit for passport trouble is key. Stay updated and fix your taxes to keep your travel rights.
Resolving Tax Liabilities
Tax liabilities can be a daunting burden, but there are avenues for resolving it. Here are some options to consider:
If you owe taxes but can’t pay it all now, a payment plan might help. The IRS offers various installment agreements that allow you to pay off your tax liabilities over time. This can provide some relief by spreading out the payments.
Offer in Compromise
An Offer in Compromise (OIC) is an option for settling tax liabilities for less than the full amount owed.
It lets you propose paying the IRS less than what you owe to settle your tax bill. But getting an OIC means proving paying in full would be too hard financially.
Innocent Spouse Relief
If a spouse didn’t report income or did it wrong, innocent spouse relief could help. It separates or eases joint tax responsibility.
Dealing with tax liabilities is tricky, but knowing these choices can ease the burden for those with tax issues.
How Much Can You Owe the IRS and Get a Passport?
You might be surprised to learn that owing the IRS a large amount won’t necessarily clip your wings. If you owe more than $52,000 in back taxes, the IRS has the power to alert the State Department. They can then deny or revoke your passport. Let’s explore the options.
Does Owing Tax Stop You from Getting a Passport?
The IRS won’t automatically reject your passport application just because you owe tax liabilities. However, they can inform the State Department about your tax liabilities. Whether they take action depends on your situation and the steps you take to resolve the liabilities.
Before you grab your sunhat and pack your suitcase, you need to know what it takes to apply for a passport. You’ll need to complete the appropriate form, provide evidence of U.S. citizenship, present a valid ID, and pay the requisite fees. Keep in mind that unresolved tax liabilities might put a spoke in your travel plans.
Resolving Tax Liabilities Before Applying
Want to jet off without the IRS raining on your parade? It’s time to roll up your sleeves and tackle that tax liabilities head-on. Sorting your taxes, be it through a payment plan or offer, helps with your passport. Getting it in order clears the path for your passport application.
Reinstating Passport Privileges
Having your passport revoked due to tax liabilities can be a stressful situation. But, you can fix this and get back passport rights by dealing with your tax liabilities. Then, following the reinstatement process.
Fixing your tax liabilities is key to getting your passport rights back. This involves working with the IRS to settle any outstanding tax payments. You can arrange this by doing a payment plan, paying a lump sum payment, or negotiating with the IRS. Once your tax liabilities are sorted, you can start the passport reinstatement process.
Passport Renewal Process
After fixing your tax liabilities, fill out Form DS-5513 for passport reinstatement. Share details on your liabilities and commit to fixing it. You might need IRS proof of resolution. The State Department reviews your case once you apply.
Getting your passport back after IRS issues needs patience. Sort the liabilities, follow the process, and aim to travel freely again without passport worries.
Innovative Tax Relief: Help With Understanding Your Options
Consulting with a tax professional or attorney can provide valuable insights and assistance in resolving your tax issues.
Here at Innovative Tax Relief, we take away the stress. We help people from across the US to resolve their tax issues. And we can help you too.
Book a free tax relief consultation and prioritize your peace of mind. Schedule a Free Consultation Now!