Are you one of thousands who owe back taxes? You might have to put travel plans on hold

Americans planning to travel abroad might run into some problems if they have overdue tax debts.

The Internal Revenue Service released details earlier this year on the enforcement of Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015.

The FAST Act requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt in the amount of $51,000, as of 2018. The amount is adjusted annually for inflation.

After that, the State Department will generally deny issuing or renewing a passport. The State Department can even revoke a passport already in use.

At least 362,000 Americans could be affected, according to the Wall Street Journal.

The debt includes penalties and interest. In an example given by Forbes, $20,000 tax debt can grow to $50,000 including penalties and interest. The IRS will usually send a written notice before it gets to this stage.

There are some exceptions to the rule, according to the IRS. Anyone who is in bankruptcy, the victim of tax-related identify theft, or located in a federally declared disaster area are some examples of taxpayers not at risk.

So how do you make sure your passport isn't at risk? Simply pay the debt, either by paying the taxes in full, entering into an installment agreement with the IRS, or making an offer in compromise. Simply call the phone number provided on the written noticed from the IRS.

Visit the IRS website for more information about federal taxes.

This story was originally published July 6, 2018 at 11:50 AM.