World Travel is Out of the Question if You Owe the IRS
If you owe the IRS money, I hope you don’t have any travel plans that require showing your passport.
You will want to stay put if you owe the IRS $50,000 or more in back taxes. Actually, the IRS will put the kibosh on your travel plans and make sure you do stay in the country.
The IRS now has the authority to notify the State Department of people with seriously delinquent tax bills. This is the result of a new bill in Tax Code Section 7345 that gives the IRS a new weapon to collect taxes. It’s called the “Revocation or Denial of Passport in Case of Certain Tax Delinquencies.” And according to the IRS the law is not limited to criminal tax cases or even just to those cases when the IRS thinks you are trying to flee. The whole idea is to use travel as a way to enforce tax collections.
According to the irs.gov website, the IRS has not yet started “certifying tax debt to the State Department.” But the IRS has plans to begin early this year. Once they’ve received certification from the IRS, the State Department will typically not issue a new passport or renew one.
You can be certain that the IRS is continuously thinking of ways to collect delinquent taxes.
They can garnish your wages and now they can prevent you from leaving the country. So, the best thing to do is make amends with the IRS. That doesn’t mean paying in full, but at least if you want to travel, you might consider hiring an exceptional tax resolution specialist and entering into some kind of arrangement with the IRS. Then you’ll be free to go wherever the wind blows.