From CNBC: 2024-08-25 10:00:01

The federal government can revoke passports for taxpayers with a seriously delinquent tax debt over $62,000. This has become more common in recent years, prompting experts to warn that taxpayers could face limitations on overseas travel until debts are resolved. Options include paying in full or entering a payment plan.

Tax enforcement involving passports has increased in the past three years, impacting travelers seeking to go abroad. The State Department has seen a record 21.6 million U.S. passport applications. Revoking a passport is a final collection effort after typical methods have failed, aiming to encourage taxpayers to settle unpaid debts to the IRS.

Overdue tax debts exceeding $62,000 can easily accumulate, according to experts. Revoking passports is not the first method used by the IRS to collect such debts, indicating previous efforts have fallen through. Taxpayers must exhaust all other options before facing potential passport revocation or limitation for travel.

Read more: How a ‘seriously delinquent tax debt’ could get your passport revoked