Have big tax bill? Your passport soon could be pulled

November 23, 2015

Millions of Americans are thinking about travel this holiday week. So is Congress, but on a larger scale.

As the House and Senate work out details of a long-term transportation bill, one funding road sign is clear. International travelers will help pay for domestic road and transit projects.

Passport to adventure by Mike via Flickr CCPhoto courtesy Mike via Flickr CC

Lawmakers in both chambers have agreed on a provision that would direct the State Department to deny passports to taxpayers who are "seriously delinquent" in their tax payments. State also could rescind existing passports of affected taxpayers.

The highway bill funding measure is projected to bring in $398 million over 10 years.

Kicks in at $50K: So just how seriously delinquent must you be to have your global travel documents pulled? The threshold is $50,000 in unpaid federal taxes.

The Internal Revenue Service would put together the list of taxpayers using that 50 grand mark, which would include not just due taxes, but also penalties and interest. The threshold also would be adjusted annually for inflation.

If you owe that much but are working with Uncle Sam to resolve your tax debt, say by setting up a tax installment payment plan, your passport would be safe. So would the travel papers of taxpayers who challenge their big tax bills through IRS channels or in court.

Overseas opposition: Not surprisingly, world travelers and U.S. citizens who live abroad are not happy with the passport proposal. 

American Citizens Abroad (ACA), a Washington, D.C.-based nonprofit that advocates for overseas residents, has written to Congress expressing its strong opposition to the passport revocation provision in the highway bill.

A major concern is that the Congressional proposal is too parochial. Passports are seen by many simply as the way to facilitate travel, often for pleasure.

But, notes ACA, the proposed passport revocation "discriminates against Americans abroad who, unlike Americans living in the US, are overwhelmingly reliant upon their US passports in their everyday lives."

In addition, writes ACA, the provision "creates a tax collection mechanism that is frankly far too draconian. This approach puts disproportionate pressure on the taxpayer and risks mistakes and unforeseeable consequences, which would be life-changing for the individual."

ACA wants Congress to pull the provision and delay any action until after it holds hearings and explored alternative ways to solve any perceived tax collection problems.

Unfortunately for worried world travelers with big tax bills, that's not likely to happen.

December deadline looming: This is not the first time Congress has considered passport revocation as a funding mechanism for transportation projects. An identical version was part of the 2012 Senate highway bill, but it was pulled from the final bill.

Now, however, its fate seems more secure.

Short-term funding for U.S. infrastructure and transit programs ends on Dec. 4. Since the passport provision, as well as the even more controversial one that would require the IRS to hire private debt collectors, are in both transportation bills, House and Senate conferees are likely to let them be in the final version to be hammered out after the Thanksgiving break.

So if you're planning a trip longer than the Turkey Day trek to grandmother's house and you owe a lot of taxes, you might want to start working on an IRS payment plan soon.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments