Skip to content

How to Prevent Denied Passport Because of Debt

Expat Tax Blog | Tax Tips for US Americans Abroad

certificate  All blogs are verified by IRS Enrolled Agents and CPAs

Passport Denied US Expat

Filing and paying US taxes is currently a role that every American living abroad may need to take care of if they reach the tax filing threshold. Want to know why? Just look into your US passport on page 28: All US passport holders are required to file and report their worldwide income every year. Thus it’s a tax responsibility for being a US citizen abroad.

However, when it comes to renewing your US passport – it may not be so easy. There is a possibility of having a denied passport because of debt. Specifically, tax debt that you may have forgotten to pay, or didn’t know about it.

Remember – April 15th is when Americans abroad need to pay any due taxes, and June 15th is the filing tax due date.

So before you make that trip to the US Embassy and Consulates, it’s important to double-check to see that you are tax compliant. Being tax compliant means you file your US taxes as an American abroad every year and pay due taxes by April 15th.

Let us show you how to prevent US passport denied abroad:

Why US Passport May Be Denied

Since February 2018, the IRS has been sending certifications to people with over $52,000 in tax unpaid tax debt to the State Department. These certifications give the State Department the right to deny their passport application or renewal.

Then, in July 2019 the IRS began issuing out Letter 6152 to taxpayers with tax debt. This letter informs them that the US Department of State will revoke their passport unless the taxpayer resolves their debts. Taxpayers are then urged to call the IRS within 30 days from the date of the letter to solve their tax debt issue.

Here is James’s story:

James is a US expat living in Singapore who plans to see his family in the states. Since his passport is expiring he has to renew it before traveling. So upon giving his application at the US Consular in Singapore, James got troubling news: they have to hold his application for 90 days because he needs to sort out some serious tax debt – thus on the way of his passport being denied as a US expat.

Sounds pretty daunting for James right? This can be a worst-case scenario for US expats who have a high outstanding tax debt (including interest and penalties).

However, don’t just fret yet on your passport being denied as a US expat! To get to James’s position one would have to willingly refuse to file taxes as a US expat abroad, and/or ignored IRS’s notices on tax penalties and levies they placed on your debt and property abroad. Secondly, James’s passport/application would NOT be at risk if he is bankrupt, been a victim of tax-related identity theft, or has a pending offer in compromise with the IRS, for example.

Additionally, if you are overseas and your passport is revoked or application denied, the State Department can issue you a temporary passport only for direct return to the United States.

The Streamlined Procedure Solution

Many US citizens abroad feel lost and overwhelmed when it comes to doing their US taxes. This is usually why they neglect their tax liability. Unfortunately though, doing this results in the risk that your passport renewal can be denied as a US expat.

Yet, you can take advantage of the Streamlined Procedure if you as an expat have been going for years without reporting US taxes and for years. So – even if you haven’t filed a tax return for 10+ years, it’s never too late!

The necessity of filing your US taxes on time as a US citizen abroad is pretty important. We found out that roughly 300,000 Americans alone are reported for their tax neglect and debt under the IRS’s knowledge.

As we wrote in this post here, our team at MyExpatTaxes can personally assist you with the Streamlined Procedure. In fact, we’ve been serving over over a hundred customers through the program. In order to get started, you need to see if you qualify and have the appropriate documents in order. You can get started by first signing up through our app.

How MyExpatTaxes Can Help You

Worried about having to owe taxes once you file? We at MyExpatTaxes will make sure we look into optimizing your return using two common expat tax benefits such as:

1. Foreign Earned Income Exclusion: You can exclude up to approx $100K USD of foreign earned income per year if you pass the bona fide residence test or have been physically out of the US for 330 full days.

2. Foreign Tax Credit: Do you pay income taxes in your host country? Then most likely you can take a $ for $ credit for your owed U.S. taxes. If you’re living in a country where the income tax rate is higher than the US (like most European countries), then you will probably always have a more foreign tax credit than you can even use!

If you live in a country with a lower income tax rate, you may still owe some US taxes but only as much as you would have paid making that same salary in the US. The trick is knowing how to claim those benefits!

That’s how we at MyExpatTaxes – the only tax software designed for US expats with an affordable price – can help you!

This post was updated on January 29, 2020

Expat Tax Topics

Related Articles

Recent Articles

Search Tax Tips

You may also like


Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/digital-nomad-expat-taxes-custom_crop.jpg.webp.lossless.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/AbstractConverter.php on line 211

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/digital-nomad-expat-taxes-custom_crop.jpg.webp.lossless.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 70

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/digital-nomad-expat-taxes-custom_crop.jpg.webp.lossy.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 70

Warning: unlink(/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/digital-nomad-expat-taxes-custom_crop.jpg.webp.lossy.webp): No such file or directory in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 76

Warning: rename(/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/digital-nomad-expat-taxes-custom_crop.jpg.webp.lossless.webp,/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/digital-nomad-expat-taxes-custom_crop.jpg.webp): No such file or directory in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 77

US Taxes for Digital Nomads: A Guide

Living and working abroad as a digital nomad is exciting. You get to see the world while making money, and it takes ...

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/bigstock-Male-Lawyer-Or-Judge-Working-W-316914445-custom_crop.jpg.webp.lossless.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/AbstractConverter.php on line 211

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/bigstock-Male-Lawyer-Or-Judge-Working-W-316914445-custom_crop.jpg.webp.lossless.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 70

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/bigstock-Male-Lawyer-Or-Judge-Working-W-316914445-custom_crop.jpg.webp.lossy.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 70

Warning: unlink(/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/bigstock-Male-Lawyer-Or-Judge-Working-W-316914445-custom_crop.jpg.webp.lossy.webp): No such file or directory in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 76

Warning: rename(/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/bigstock-Male-Lawyer-Or-Judge-Working-W-316914445-custom_crop.jpg.webp.lossless.webp,/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/bigstock-Male-Lawyer-Or-Judge-Working-W-316914445-custom_crop.jpg.webp): No such file or directory in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 77

The FATCA for Americans Abroad

We talk about US taxes a lot here, but did you know reporting your foreign assets to the US government is just ...

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/social-security-americans-abroad-custom_crop.jpg.webp.lossless.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/AbstractConverter.php on line 211

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/social-security-americans-abroad-custom_crop.jpg.webp.lossless.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 70

Warning: filesize(): stat failed for /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/social-security-americans-abroad-custom_crop.jpg.webp.lossy.webp in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 70

Warning: unlink(/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/social-security-americans-abroad-custom_crop.jpg.webp.lossy.webp): No such file or directory in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 76

Warning: rename(/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/social-security-americans-abroad-custom_crop.jpg.webp.lossless.webp,/homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/bb-plugin/cache/social-security-americans-abroad-custom_crop.jpg.webp): No such file or directory in /homepages/35/d709502024/htdocs/clickandbuilds/MyExpatTaxes/wp-content/plugins/webp-express/vendor/rosell-dk/webp-convert/src/Convert/Converters/ConverterTraits/EncodingAutoTrait.php on line 77

8 Things to Know about Social Security for Americans Abroad

US Social Security is a federal program set up by the Social Security Administration that provides benefits for unemployed, disabled, or pensioned people within ...

How to File for the December 15 US Tax Extension in 2021

If you are an American living abroad and the thought of filing your US tax return for the October 15 deadline concerns ...

Recent posts

US Taxes for Digital Nomads: A Guide

Living and working abroad as a digital nomad is exciting. You get to see the world while making money, and it takes ...

The FATCA for Americans Abroad

We talk about US taxes a lot here, but did you know reporting your foreign assets to the US government is just ...

8 Things to Know about Social Security for Americans Abroad

US Social Security is a federal program set up by the Social Security Administration that provides benefits for unemployed, disabled, or pensioned people within ...

Thousands of users in over 170 countries.

See why people from around the world love us.

Featured In

The leading, and most affordable, tax filing platform for American expats.

Yahoo! Finance

Winning Choice

Best Tax Software for Expatriates in 2021

Scroll To Top