Employers who have employees who travel internationally for business should alert their employees about new IRS procedures concerning passports.
If an individual owes $50,000 or more in taxes (including interest and penalty), then the IRS can send a certification to the U.S. State Department granting authorization for the Department to revoke or not renew the passport. After the certification process is initiated, it is not easy to stop without paying the tax. However, individuals can take steps to prevent certification such as paying down the liability, entering into a payment plan (including a non-amortizing plan) or disputing or compromising the taxes.
The IRS is gearing up to begin issuing certifications to revoke or deny the renewal of passports over the next several months. Therefore, individuals who owe more than $50,000 or more in taxes should start to resolve tax issues now to prevent the IRS from impeding their international travel.