IRS Seizes Seriously Delinquent Taxpayers’ Passports
In some cases, the IRS may seize, or threaten to seize, seriously delinquent taxpayers' passports.
The IRS will issue Notice CP508C to taxpayers with “seriously delinquent” tax debt and the service has resumed its program of notifying the State Department of taxpayers’ unpaid federal debts.
The U.S. Department of State generally will not renew a passport or issue a new passport to taxpayers after receiving a certification of “seriously delinquent” tax debt from the IRS, and they may revoke or place limitations on current passports. Generally, taxpayers can use their passport until they have been notified by the U.S. Department of State that it’s taking action to revoke or limit the passport.
Once a taxpayer receives the Notice CP508C, they have 30 days to dispute the notice. Taxpayers are cautioned to retain the notice until the issue is resolved. The IRS contact number is in the top right-hand corner of the CP508C notice. If the debt has already been satisfied, the taxpayer will need to have proof of payment available.
Seriously Delinquent Tax Debt
Seriously delinquent tax debt (including interest and penalties) is an individual's unpaid, legally enforceable federal tax debt and is annually inflation adjusted. For 2024 the amount is $62,000 (including interest and penalties), up from $59,000 for 2023, for which:
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Notice of federal tax lien has been filed and all administrative remedies under the Internal Revenue Code have lapsed or been exhausted, or
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A levy has been issued.
Getting the Certification Reversed
Once IRS has certified the “seriously delinquent” tax debt to the U.S. Department of State the IRS will reverse the certification when:
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The tax debt is fully satisfied or becomes legally unenforceable
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The tax debt is no longer seriously delinquent.
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The certification is erroneous., A previously certified debt is no longer seriously delinquent when:,
• The taxpayer and the IRS enter into an installment agreement allowing the debt to be paid over time.
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The IRS accepts an offer in compromise to satisfy the debt.
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The U.S. Department of Justice enters into a settlement agreement to satisfy the debt.
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Collection is suspended because the taxpayer requests innocent spouse relief.
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The taxpayer makes a timely request for a collection due process hearing in connection with a levy to collect the debt.
Additionally, a certified debt is no longer seriously delinquent for any taxpayer:
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Who is in bankruptcy?
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Who is identified by the IRS as a victim of tax-related identity theft.
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Whose account the IRS has determined is currently not collectible due to hardship.
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Who is located within a federally declared disaster area.
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Who has a request pending for an installment agreement with the IRS.
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Who has a pending offer in compromise with the IRS?
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Who has an IRS-accepted adjustment that will satisfy the debt in full?
Once the tax problem with the IRS has been resolved in one of the instances included above, the IRS will, within 3 days, reverse the certification and provide notification to the U.S. Department of State.
If a taxpayer is already overseas when the State Department takes action to revoke or limit the taxpayer’s passport, the agency will either limit the passport only for return travel to the U.S. or issue a limited passport that only permits return travel.