Revocation or Denial of Passport Dollar Limit Increased for IRS Taxes

Services for Real Estate Pros with Richardson Accounting and Tax

Currently the threshold for revocation or denial of passports is set at $54,000. When a taxpayer accumulates this dollar amount of unpaid IRS taxes, the IRS can certify the tax debt to the US State Department. The US State Department will revoke, deny or limit passport rights of a taxpayer in this scenario.

For calendar year 2022, the threshold for seriously delinquent tax debt has increased to $55,000. This value is adjusted annually for inflation. It could be good news for taxpayers that are close to the line and might be able to avoid passport restrictions due to the extra $1,000 limit.

Taxpayers can dispute their certification by the IRS to the US State Department. Certification can be reversed if warranted.

Even if one cannot pay their taxes in full, taxpayers can enter into a collection alternative to regain passport rights after certification:

  1. Installment Agreement (IA) - Enter into a payment plan to pay down taxes monthly.
  2. Currently Not Collectible (CNC) - If the payment of a tax will cause a financial hardship, one can qualify for CNC status.
  3. Offer in Compromise (OIC) - Taxpayers file a request to settle their taxes for less than the outstanding liability.

With the arrival of the holiday season, overseas travel is picking up. Protect your passport rights in the event you owe enough IRS taxes to trigger certification to the US State Department.

Feel free to call or email me if you have questions about the passport program.

Photo by Element5 Digital from Pexels


Posted by

Howard Richardson

Enrolled Agent

IRS and State Tax Representation

(213) 545-1799

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