{"id":159,"date":"2023-04-28T13:04:48","date_gmt":"2023-04-28T17:04:48","guid":{"rendered":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/?p=159"},"modified":"2023-10-10T14:10:27","modified_gmt":"2023-10-10T18:10:27","slug":"can-back-taxes-cost-you-your-passport-in-some-cases-yes","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/filing\/can-back-taxes-cost-you-your-passport-in-some-cases-yes\/","title":{"rendered":"Can back taxes cost you your passport? In some cases \u2013 yes."},"content":{"rendered":"\n

Your U.S. passport is your lifeline to travelling abroad, and as a U.S. expat, that fact has more weight than it does for other Americans.<\/p>\n\n\n\n

Imagine this \u2014 you\u2019ve been living outside the U.S. for a few years, building a new life in a far\u2013away home away from home. You finally feel like you’ve got the whole living abroad thing down, and book a trip back to the U.S. to visit family and friends.<\/p>\n\n\n\n

Imagine your surprise when you get to customs and find out your passport was revoked by the IRS.<\/strong> Alarming, right? It may sound like a scare tactic, but this scenario is a reality for some U.S. expats \u2014 and one we want to help you avoid.<\/p>\n\n\n\n

File on my own<\/a><\/div>
File with an advisor<\/a><\/div><\/div>\n\n\n\n

Take care of your passport by taking care of your U.S. expat taxes<\/h2>\n\n\n\n

As a U.S. expat, you likely know where your passport is at any given time and the requirements needed to keep it up to date. Can you say the same about your tax requirements?<\/strong> You should be able to \u2014 the IRS recently said it\u2019s following through on plans to implement tax penalties like revoking passports or denying renewals for those with tax debt of $54,000 or more. As a first step, the IRS sends at\u2013risk taxpayers a letter<\/a>. But as many expats know, international mail can be slow \u2014 or not arrive at all.<\/p>\n\n\n\n

Then, while your letter is in the mail, your case is also sent to the Department of State. This is what could potentially prevent your return trip. Instead of traveling back to your home abroad, you\u2019re stuck in the States until your situation is resolved, which could take months or years. Meanwhile, you may have a job, family and other responsibilities counting on you abroad.<\/p>\n\n\n\n

If you\u2019re thinking there\u2019s no way you could owe that much, consider this:<\/strong>\u202fMany citizens living abroad don\u2019t know they have to pay U.S. taxes on foreign income<\/a>, meaning their unpaid taxes start stacking up. Pile on yearly penalties of $10,000 or more for failing to file returns or other required forms and $54,000 is not so much of a stretch.<\/p>\n\n\n\n

Here\u2019s what it means to you: If you owe the IRS $54,000 or more and you don\u2019t have a payment plan or other agreement set up, your passport could be at risk.<\/strong><\/p>\n\n\n\n

If this makes you nervous, we get it. You should know the IRS does give you options, such as payment agreements, so you can avoid risking your passport. Plus, you\u2019re not alone \u2014 our international tax advisors are experts in helping clients to become compliant and avoid tax penalties<\/a> in these situations.<\/p>\n\n\n\n

Get started on your expat taxes now.<\/strong><\/a><\/p>\n\n\n\n

Other U.S. tax matters expats should know about<\/h2>\n\n\n\n

You might be thinking, \u201cI\u2019ve been filing my taxes; I\u2019m good, right?\u201d Well, maybe, but U.S. taxes for citizens living abroad<\/a> are tricky and you need to be up\u2013to\u2013speed on the additional expat tax rules<\/a>. It\u2019s truly a case of what you don\u2019t know might hurt you \u2014 and cost you dearly.<\/p>\n\n\n\n