Installment AgreementPractice Areas
My passport has been revoked or my passport application was denied because I owe money to IRS. How can I fix this?
If you have “seriously delinquent tax debt” IRS is allowed to certify that debt to the State Department for action. This means that the State Department generally will not issue a passport to you after receiving certification from the IRS. The State Department may deny your passport application or revoke your current passport. If you’re overseas, the State Department may issue you a limited validity passport good for direct return to the United States.
What is seriously delinquent tax debt?
Seriously delinquent tax debt is an individual’s unpaid, legally enforceable federal tax debt (including interest and penalties) totaling more than $54,000 (adjusted yearly for inflation) for which a:
- Notice of federal tax lien has been filed and all administrative remedies under the law have lapsed or have been exhausted, or a
- Levy has been issued.
If your tax debt has been certified to the State Department IRS will send you a notice in the mail (Notice CP508C). IRS will reverse the certification under the following circumstances:
- The tax debt is fully satisfied or becomes legally unenforceable,
- The tax debt is no longer seriously delinquent, or
- The certification is erroneous.
Once your certification has been reversed IRS will send you a letter in the mail (Notice CP508R).
What Can I Do?
IRS should not revoke passports or deny applications for taxpayers whose accounts are:
- Currently not collectible due to hardship;
- In a current or pending installment agreement;
- In a current or pending Offer in Compromise;
- Under a bankruptcy proceeding,
- Pending a timely filed Collection Due Process hearing;
- Pending a request for Innocent Spouse relief.
The Pless Law Firm, P.A. can help you navigate through this process so you can travel without worry.