Seriously delinquent tax debt (SDTD) could put your passport at risk (unless an exception applies). In 2023, SDTD is an unpaid federal tax assessment exceeding $59,000, where a lien has been filed and other remedies have been exhausted. If such conditions exist, the U.S. State Dept. can deny, revoke or limit a passport. One taxpayer had tax debt exceeding $1.2 million. He argued that the underlying tax bill was improper but didn’t pursue the remedies provided to have the debt reassessed, and the time to do so lapsed. Upon applying for a new passport, the State Dept. denied the request based on IRS notification of his SDTD status. The U.S. Tax Court upheld the denial. (160 TC No. 1)
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