The United States can revoke a citizen’s passport when the individual is seriously delinquent on federal tax obligations. A 2015 amendment to the Fixing America’s Surface Transportation Act gave the State Department authority to deny or cancel passports for taxpayers who owe a substantial amount to the Internal Revenue Service.
Legal basis
- Fixing America’s Surface Transportation Act (2015) – added a provision allowing the State Department to refuse issuance or renewal of a passport for “seriously delinquent” taxpayers.
- Federal law – requires the Treasury Department to notify the State Department of taxpayers with a tax debt that meets the statutory threshold (generally $55,000, adjusted for inflation).
- Constitutional challenges – have been raised on the grounds that international travel is a protected right, but courts have consistently upheld the statute.
Recent appellate ruling
- In the 10th Circuit Court of Appeals, an appeals court affirmed that revoking a passport for tax delinquency does not violate constitutional rights.
- The decision, reported by Bloomberg Law, confirmed that the statutory provision is “perfectly legal” and that the government’s action is within its authority.
How revocation is applied
- Tax delinquency identification – The Treasury’s Office of Tax Enforcement flags accounts that exceed the debt threshold.
- Notification to the State Department – The Treasury informs the State Department, which then places the individual on a “passport denial list.”
- Denial or cancellation – When the individual applies for a new passport or renewal, the State Department can refuse issuance or cancel an existing passport.
- Effect on travel – The individual may be unable to leave the United States or return if abroad, effectively grounding them until the debt is resolved.
Risks for U.S. expatriates
- Communication delays – Overseas taxpayers with foreign addresses may experience slower notice and limited ability to negotiate payment plans.
- Mistakes in tax processing – Errors by tax authorities (e.g., misapplied payments) can inadvertently create a delinquent status, as illustrated by cases where a taxpayer’s check was cashed but later deemed unpaid.
- Limited recourse – Courts have generally sided with the government; successful challenges are rare.
Mitigation strategies
- Maintain current tax filings – Ensure all federal tax returns are filed and any liabilities are paid promptly.
- Monitor tax notices – Keep an eye on correspondence from the IRS and Treasury to catch potential errors early.
- Engage international tax advisors – Professionals familiar with cross‑border tax compliance can help manage obligations and address discrepancies.
- Consider a second passport – Holding an additional citizenship can provide travel flexibility if a U.S. passport is revoked.
Broader implications
The ruling reinforces the government’s ability to use passport control as leverage for tax compliance. While the United States is not the only country with such powers, the precedent suggests that other jurisdictions may expand similar restrictions for different offenses. Citizens should be aware that passport revocation is a tool that can be employed beyond tax issues, potentially affecting individuals for a range of legal violations.
Bottom line: U.S. taxpayers, especially those living abroad, should keep tax obligations in good order, stay vigilant for official notices, and consider contingency plans—such as a second citizenship—to safeguard their ability to travel.
