IRS Debt May Cost You More Than Money—It Could Mean Losing Your Passport

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If you are in arrears with the Internal Revenue Service (IRS), your next trip abroad could be in jeopardy.

According to Clear Star Tax, a trusted tax resolution firm, the service has the legal authority to restrict or revoke a taxpayer’s passport when unpaid federal tax debt has reached a threshold. Consideration should be given to unpaid taxes and issues related to passport and travel restrictions.

According to the 2015 law, known as the United States Surface Transportation Relief Act, the IRS can trigger the blocking or renewal, even revocation of passports. For frequent travellers, business professionals or anyone planning international travel, the consequences can be severe.

What is a seriously delinquent tax debt to the IRS?

According to the Service’s regulations, seriously delinquent tax debt includes:

1. An unpaid federal tax balance of $62,000 or more (amount adjusted annually for inflation).
2. A final notice of intent to levy has been issued.
3. The taxpayer did not enter into a resolution, such as an installment agreement or offer in compromise.

Certainly, taxpayers are not aware that an unresolved tax debt can directly affect their ability to travel. This situation has resulted in hundreds of taxpayers being unable to use their passport or even having their applications to obtain the document denied.

Here’s how you can lose passport privileges

Fortunately, travel restrictions are lifted once the taxpayer reaches a formal agreement with the IRS. Certain companies help prevent or reverse passport-related measures, such as with

Installment Agreements: formal monthly payment plans to regain good standing on their loans.
Offer in Compromise: settle the debt for less than what is owed
Currently uncollectible status: pause collections due to financial hardship
Prompt case review and communication with the IRS in urgent travel situations.

Who may be subject to IRS restrictions

Taxpayers most likely to be affected by passport restrictions are known to be those with long overdue tax balances, as well as individuals who have ignored multiple IRS notices, taxpayers who are unaware that their debt has reached the threshold for enforcement, and business owners or self-employed individuals with several years of unpaid returns.

Solution if your Social Security cheque has stopped because you have not updated your details

If you changed your bank details in April or early May and have not received your Social Security payment, the first thing to do is log in to your account on my Social Security. There you can check if the payment was issued, if there are any alerts linked to the change, or if additional verification is missing. If you detect an error, you should contact your local Social Security office directly or call the national hotline.

The staff will be able to help you correct the account number and verify whether it is necessary to request a resubmission of the payment. If the deposit was directed to a closed account, the bank will automatically return it to the SSA, but this process can take between five and fifteen business days, depending on the financial institution involved.

Learn how to avoid bank errors on upcoming Social Security payments

To avoid further delays in June or the following months, it’s key to verify that your account number and routing code are correct. The account must be in your name, exactly as it appears on Social Security records. In addition, it is recommended that you do not close the old account until you confirm that the first payment has arrived correctly in the new one. Regularly accessing your profile on my Social Security also allows you to monitor changes and be alerted if something goes wrong.

A mishandled bank update may seem like a minor detail, but in May it is already leaving thousands of people without a cheque. Taking simple precautions avoids complications when stability is needed most.