Chicago Passport Agency to close offices as its business and tax liabilities balloon
Posted On July 12, 2021
Chicago is about to have its first full day without a passport agency in more than a decade, as the city’s tax liability balloons and a growing number of passport agency businesses struggle to keep up with demand.
The Chicago Passports Agency, which has been in business since 1982, has been on the decline.
Last year, it lost $3.5 million on its operations and the agency lost $7 million on business related to the U.S. presidential election, according to the Chicago Business Journal.
The agency was last up to the end of December.
The agency has lost more than $4 million in taxes in the last two years.
Its losses include:The Chicago Tribune reported last month that the agency was looking at consolidating into a company with a bigger financial base.
However, the agency said it would only do so if the consolidation could be completed by Dec. 31.
The Chicago Business Tribune reported that the city of Chicago also plans to consolidate its citywide passport office.
It’s unclear how long the city and the Passports agency would need to work out a deal before the city could begin accepting passport cards.
A spokesman for the agency told the Chicago Tribune the company was currently evaluating all options, including closing its doors.
“Our business model is in shambles, and we are working with our creditors to ensure we can continue operating safely,” the spokesman said.
“Our business has become a financial nightmare for us.”
Passport agency spokesman Michael J. Sullivan told the Tribune the agency has been struggling financially since the end, and the city is trying to get a better understanding of its finances.
He said that the organization has been working on ways to help the city.
Chicago has more than 8.7 million people and more than 6 million people with passports.
About 4.2 million of them are registered to vote, the Tribune reported.
The Tribune reported the Chicago office lost $9.8 million last year, about $1 million more than it had in the previous fiscal year.