You might have heard the announcement by IRS on its site that “The IRS began sending certifications of unpaid tax debt to the State Department in February 2018.” It is reported that IRS has identified 362,000 Americans with overdue tax bills and they will be denied passport privileges including the shock of denial of passports when they apply for them or seek renewals.
What is the law regarding power to deny password?
Suffice to say , IRS gets power to refer the names of tax defaulters to State Authorities on account of a law passed in 2015 to deny or block passports of delinquent tax payers. The amendment introduced IRC § 7345 that authorizes the IRS to certify seriously delinquent tax debt to the State Department , who based on such a certification , can revoke or not issue the passport.This site has already published the article titled Passport Can Be Denied Or Revoked For Unpaid Tax Demand By IRS ! .
A bit of good news is for people who are already outside USA . They will be eligible to obtain limited passports that allow them to return to the United States instead of being stranded abroad.
So it is advisable to clear your dues with IRS who is willing to offer payment plans to taxpayers having financial hardships stemming from bankruptcy, identity fraud or natural disasters.Read 4 Options to Solve IRS Tax Debt