The Internal Revenue Service (IRS) doesn't have control over passports: that's the purview of the State Department. Tax debts are assessed by the IRS: the State Department doesn't generally have access to taxpayer information because of privacy laws. To bridge the two, the law now requires the IRS to advise the State Department about seriously delinquent taxpayers. Tax debt which is being paid on time as part of an installment agreement or under an Offer In Compromise doesn't count. Here's what the IRS said most recently:The IRS has not yet started certifying tax debt to the State Department.
Source: Forbes January 27, 2017 02:52 UTC