Are you planning an international trip in the near future? Before you pack your bags and head to the airport, you might want to take a closer look at your tax situation. Believe it or not, the federal government has the power to revoke your passport if you have a seriously delinquent tax debt.
At Extreme Investor Network, we want to ensure that our readers are informed and prepared when it comes to their personal finances. That’s why we’re sharing this important information about the consequences of ignoring a big tax bill.
According to federal law, the IRS and Treasury Department are required to notify the State Department if an American has a tax debt of more than $62,000 that they have repeatedly ignored. This includes federal tax liabilities, penalties, and interest, and the threshold is adjusted annually for inflation.
If you have a seriously delinquent tax debt, the State Department may refuse to issue a new passport or even revoke or limit an existing one. This enforcement mechanism has been in place since 2018 and is used as a last-ditch effort to collect unpaid tax levies.
Before your passport is revoked, you will receive a notice from the IRS outlining the potential implications of your tax debt. This notice gives you the opportunity to resolve your debt by paying the balance in full, entering into a payment plan, or making a compromise agreement with the IRS.
At Extreme Investor Network, we understand the importance of staying on top of your tax obligations to avoid any unwanted consequences. Whether you’re a frequent traveler or simply planning a vacation abroad, make sure your tax situation is in order before you hit the road. Remember, it’s better to be safe than sorry when it comes to your personal finances.