IRS passport actions are a relatively new enforced collection tactic used by the IRS. If you have delinquent tax debt and meet certain other conditions, the IRS can inform the State Department of your tax debt problems, resulting in a passport revocation or a denial of your passport renewal.
The Certification Process
First, you must meet two threshold conditions before your tax debt will be certified:
- You must owe more than $52,000 in back taxes, penalties, and interest
- The IRS must have either filed a Notice of Federal Tax Lien or issued a levy on your property or wages
Even if you meet these conditions, your passport will still be safe if you’ve negotiated an installment agreement, submitted Offer in Compromise, have an active bankruptcy, or qualify for some other exception.
The IRS will notify the State Department of your tax debt and send you a CP508C Notice. Once your tax debt is certified, you’ll have to request a reversal of certification from the IRS.
A certification doesn’t necessarily result in a revocation of your current passport. But the IRS can ask the State Department to revoke your passport if it is needed to incentivize repayment of your tax debt, such as when a taxpayer has significant offshore activities.
Reversal of Certification
The IRS will reverse your certification in the following situations:
- You pay your tax debt in full
- You negotiate an installment agreement
- The IRS accepts your Offer in Compromise
- The statute of limitations on collection expires for your tax debt
- The certification was erroneous
The IRS will generally make a reversal within 30 days and then notify the State Department. However, expedited processing is available in 14 to 21 days if you have imminent travel plans (within 45 days). Send proof of your travel plans and a copy of the letter denying or revoking your passport from the State Department in order to qualify for expedited processing.
If you receive an IRS passport notice, act quickly to make sure you don’t have to cancel your next vacation or overseas business trip. Contact a tax attorney for assistance avoiding or reversing a certification of your tax debt.
The Gartzman Law Firm can help you with passport actions and other IRS tax problems. Use our contact form to request a consultation with an Atlanta tax resolution attorney.