Your Passport Being Denied as a US Expat is Possible if You Don’t Pay your Taxes

Storytime : 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.

Unfortunately, ignorance is bliss doesn’t work so well with the IRS…

There may come a time where your tax negligence can catch up to you. Many US citizens abroad feel lost and overwhelmed when it comes to doing their US taxes. This is usually why they neglect their tax responsibility. Unfortunately though, doing this results in the risk that your passport renewal can be denied as a US expat.

But please keep in mind though, one can take advantage of the Streamlined Procedure if you as an expat have been going for years without reporting US taxes for years. So – even if you haven’t filed 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.

We at MyExpatTaxes can help you NOT be one of those Americans. Sign up on our waitlist today to get ready for a surprisingly smooth ride in handling your US taxes.


Worried about having to owe taxes once you file? We’ll make sure we look to optimize your return using 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 are a bona fide resident abroad / 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 a fixed/affordable price – can help you!

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