fbpx

< Back to Thought Leadership

Your Individual Tax Debt Can Affect Your Passport

What does your individual tax debt have to do with a passport?

Before late 2015, mostly nothing at all. Passports are issued by the State Dept., not the IRS. However, in 2015, Congress passed and President Obama signed a law that requires the IRS to notify the State Dept. of taxpayers having “seriously delinquent tax debt”. Generally defined as tax debt exceeding $50,000 and for which a lien has been filed (for tax years beginning after Jan. 1, 2016). Unless exceptions apply, such tax debt is grounds for denial of a passport or revocation or limitation of an existing passport. Now, over two years later, the IRS has finally issued guidance for the implementation of this provision, in Notice 2018-1. Although they have yet begun to “certifying” tax debt to the State Department, they have indicated this is set to begin in January 2018.

According to the IRS, not all tax debts are included in the reporting process. FBAR penalties, current installment agreements, current offers-in-compromise, and more will be excluded.

 

Questions about how this might affect you? Contact your local Blue & Co. advisor.

 

Blue & Co.,LLC - Read more in our Hot Topic Archive! Click Here. Like what you read? Subscribe to our newsletter. Click Here.

 

cryptocurrency for not-for-profits

Fundraising Expenses: Know the Rules, And Your Options

By Rick Shields, CPA, Principal at Blue & Co. One of the issues not-for-profits must address is how to raise funds while also properly reporting the associated costs for donor […]

Learn More
Improving Patient Loyalty with Network Integrity | Part Two of a Four Part Series | Text overlay on a photo of a hospital.

Improving Patient Loyalty with Network Integrity

Network Integrity is the ability to keep patients within the organization-defined provider network and can optimize your hospital’s financial and operational performance. Blue & Co.’s Shawn Williams, an Audit Director […]

Learn More
one big beautiful bill signed into law

The One Big Beautiful Bill Is Law—Now What?

By Amy L. Sandlin, CPA, Tax Quality at Blue & Co. On July 4, 2025, President Trump signed into law a sweeping budget reconciliation bill, informally titled the “One Big […]

Learn More