IRS Collection

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IRS collection is the process the IRS uses to collect unpaid federal tax, penalties, and interest after a taxpayer does not pay a balance due. For U.S. expats, IRS collection can involve notices, payment plans, liens, levies, passport certification, and other steps to resolve tax debt from abroad.

Why it matters for U.S. expats

IRS collection matters for U.S. expats because tax debt does not disappear when someone lives overseas. The IRS can continue sending notices, adding penalties and interest, offsetting refunds, filing liens, and certifying seriously delinquent tax debt to the State Department. Collection issues can also affect passport renewal, travel plans, and future compliance.

Common questions

1. Can the IRS find me if I live overseas?

Yes. The IRS can use tax returns, information returns, FATCA reporting, treaty information exchange, foreign bank reporting, and prior U.S. records to identify U.S. taxpayers living abroad.

2. Can the IRS take my passport for unpaid taxes?

The IRS can certify seriously delinquent tax debt to the State Department. For 2026, the threshold is more than $66,000 in legally enforceable unpaid federal tax debt, including penalties and interest.

3. Can the IRS garnish foreign wages or bank accounts?

The IRS has stronger collection tools over U.S.-based assets, U.S. refunds, and U.S.-source payments. Collection against foreign wages or foreign bank accounts is more limited and depends on the country, account structure, and any applicable enforcement cooperation.

4. Will the IRS audit me if I file from abroad?

Filing from abroad does not automatically cause an audit. However, returns with foreign income, foreign accounts, foreign business interests, or missing international forms can receive closer IRS scrutiny.

5. How do I contact the IRS from outside the U.S.?

U.S. taxpayers abroad can use the IRS international taxpayer contact page, call the international taxpayer service number, or respond by mail to the address listed on the IRS notice.

6. How do I make IRS payments from a foreign bank account?

The IRS accepts some payments by international wire transfer. Taxpayers can also pay by card, use a U.S. bank account if available, or set up an IRS payment plan when they cannot pay in full.

7. What is the IRS International Taxpayer Service?

The IRS International Taxpayer Service helps taxpayers outside the U.S. with account questions, notices, payments, and international filing issues. It does not replace filing obligations or professional tax advice.

8. What happens if I ignore IRS collection notices while living abroad?

Penalties and interest can continue to grow. The IRS may also offset refunds, file a federal tax lien, issue levies, certify tax debt for passport action, or move the account into more serious collection status.

9. Can U.S. expats set up an IRS payment plan?

Yes. U.S. expats can request an IRS payment plan if they cannot pay the full balance immediately. A payment plan can help stop some collection actions if the taxpayer stays current.

10. Can U.S. expats settle IRS tax debt for less than they owe?

Yes, through an offer in compromise if they qualify. The IRS accepts an offer only when it determines the taxpayer cannot pay the full debt through income, assets, or future collection potential.

Related forms

• Form 1040: U.S. Individual Income Tax Return
• Form 9465: Installment Agreement Request
• Form 433-A: Collection Information Statement for Wage Earners and Self-Employed Individuals

When to get help

Professional guidance is important when:

• You received an IRS collection notice while living abroad.
• You owe tax, penalties, or interest and cannot pay in full.
• Your tax debt may affect your U.S. passport.
• You need an IRS payment plan or offer in compromise.
• The IRS filed or threatened a lien or levy.
• You have unfiled U.S. tax returns from prior years.
• You disagree with the amount the IRS says you owe.

Bright!Tax can review your IRS notices, help you understand your options, and coordinate the filings needed to resolve U.S. tax debt from abroad. Get started with Bright!Tax.

Related Bright!Tax guides

• Need to file U.S. taxes late? What expats need to know
• U.S. citizen abroad who never filed a tax return
• What happens if you miss the tax deadline?

Official sources

• IRS: The collection process
• IRS: Payment plans and installment agreements
• IRS: Offer in compromise
• IRS: Revocation or denial of passport in cases of certain unpaid taxes
• IRS: Contact my local office internationally

Reviewed by

Katelynn Minott, CPA & CEO

Last reviewed

June 2026