Jay Freeborne

by Jay Freeborne, Enrolled Agent

It's been a few years, since the IRS and the State Dept combined forces to prevent passport holders from renewing their passport if they owed more than $50,000 in back taxes. What is clearer now is how the program is actually being enforced.

While there still is some ambiguity, it does NOT appear that the State Department is "confiscating" passports. They are however, preventing people from renewing passports (and we can assume getting a passport, period). They are also preventing children from getting passports if a parent owes back taxes north of the $50k marker.

What is clearing passports for renewal is an agreement to pay the back the taxes or the submission of an Offer in Compromise. Passport renewal blocks sometimes happen at the most inconvenient times like when you are going on an important trip, for example. WATAX staff have had to work very fast on these cases, but we have done so with success, so far!

If you are an American expat and want to avoid potential passport problems, it would be prudent to file your last six years of returns utilizing the Foreign Earned Income Exclusion or Foreign Tax Credit and any necessary FBARS to bring yourself into full tax compliance.

With 30 plus years of continuous operation, WATAX is capable of resolving any kind of back tax issue. Email us a description of your tax issue and we'll contact you OR call us a 1-888-282-4697.

Registered members of the National Association of Enrolled Agents.

Call and talk with a tax expert for free:
(888) 282-4697

or email us now