Woodland Park, CO asked in Tax Law for Colorado

Q: I have 1.4 million USD in IRS tax debt. Can I take a trip to a foreign country?

I have 1.4 million USD in IRS tax debt. I have been involved with the IRS to settle the debt and they are threatening forced bankruptcy. I would like to take a trip to a foreign country. Should I be worried about my passport when dealing with US Customs? Might they seize my passport?

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3 Lawyer Answers
James L. Arrasmith
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A: If you have $1.4 million in IRS tax debt and are already in communication with the IRS regarding settlement, you should be aware of potential travel restrictions. The IRS has the authority to request the State Department to revoke or deny your passport if your tax debt is considered "seriously delinquent." Generally, this applies to debts over $59,000, including interest and penalties. Given your situation, your debt is well above that threshold, so it is a possibility that your passport could be affected.

Before planning any international trips, it's important to check the status of your passport. If the IRS has flagged your debt as seriously delinquent, the State Department could prevent you from renewing your passport or might even revoke it. This can happen without much warning, so confirming this before traveling is key to avoiding unexpected complications at customs.

To prevent issues, you may want to negotiate a payment plan or other agreement with the IRS to remove the "seriously delinquent" designation. This could protect your passport status and ensure you can travel without problems. Staying informed and proactive is your best strategy in this situation.

A: Yes, you should be concerned.

Negotiate a resolution plan and verify your passport is valid before attempting to leave the country.

A: If you owe $1.4 million in IRS debt, there are tax resolution options available, such as offer in compromise, partial payment agreement or currently non collectible status.

You will be able to travel if anyone of the options I stated above post to your account.

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