United States

Late with your taxes? You may lose your passport.


If you owe back taxes of $50,000 or more, the IRS may seek to revoke your international traveling privileges. If key employees travel internationally, it may be prudent to understand their risk as well. 

The Fixing America’s Surface Transportation Act (FAST Act) authorizes the IRS to work with the U.S. Department of State to revoke or deny the passports of taxpayers with a ‘seriously delinquent tax debt,’ generally defined as a federal tax liability greater than $50,000 with respect to which the taxpayer has exhausted all administrative rights of appeal or review.

While the IRS has not yet outlined the procedural aspects of the law, the FAST Act should quickly prove to be an important tool for the collection of tax liabilities. Taxpayers with outstanding IRS liabilities should contact their tax advisors to determine whether their passport privileges are at risk.

If anyone on your executive team has a significant tax debt, your business may be affected by their inability to travel. As a business owner or leader you should assess whether key executives are delinquent in their tax obligations and whether internal procedures should be adjusted to better monitor the tax compliance of key employees who travel.

Ramon Camacho


Ramon advises businesses on international tax and capital markets issues, including withholding tax, inbound and outbound investment, and Treasury matters. Contact him at ramon.camacho@rsmus.com.

Areas of focus: International Tax PlanningWashington National Tax