Passport renewal is already a pain, but if you have seriously delinquent tax debt, you could lose your passport altogether thanks to a new rule.
If you owe more than $50,000 in tax debt, the State Department can deny your passport renewal or even revoke an active one.
Yet another reason to pay your taxes on time!
These rules not only apply to criminal tax cases, but to anyone who meets the criteria of being “seriously delinquent.”
The $50,000 includes penalties and interest, so even if you’re $20,000 behind on your taxes, those extras can add up to the $50,000, putting you at risk of having your passport revoked, according to Forbes.
If you don’t want to lose your passport, one of your options is to simply pay what you owe to the IRS.
You can also set up an approved installment agreement, if you can’t afford to pay the entire tax bill in full, according to a news release from the IRS.
If this new rule will apply to you, it’s a good idea to head over to the IRS website to view the full list of options you have so your passport isn’t in jeopardy.
This type of tax debt doesn’t happen overnight or without you noticing. Generally, by the time you reach the “seriously delinquent” category, the IRS has sent you multiple notices. It is highly recommended to hire a tax lawyer if you get to this point.
Plus, $50,000 is a lot of money to owe. Chances are, this rule will only apply to a select few people who have racked up tax debt over a period of time.
Still, if you do owe that much, you’ll have at least 90 days to reach a resolution on your tax debt before your passport application is denied. So long as the tax dispute is ongoing, a tax debt is not final.
Wondering how to get your taxes done, without forking over tons of cash for an accountant? Check out these three ways you can get your taxes done for free.