IRS Passport Revocation for Unpaid Taxes


Did you know that the IRS can revoke your passport? Or prevent you from getting one? Unfortunately, many Americans who owe high back taxes do not know that something has happened with their passport until after they planned their trip. If you receive a notice from the IRS about massive tax debt, understanding the implications and taking prompt action is crucial. Here's what you need to know about IRS passport revocation for unpaid taxes and how to address it.
What Is IRS Passport Revocation?
If you owe substantial back taxes, the IRS can certify you as having a "seriously delinquent tax debt." This certification can lead to the State Department denying your passport application or revoking your current passport. As of 2023, a seriously delinquent tax debt is defined as owing more than $59,000 in back taxes, penalties, and interest, and the IRS has either filed a Notice of Federal Tax Lien or issued a levy on your property or wages.

Understanding the Certification Process
The process begins when you meet the criteria for seriously delinquent tax debt. The IRS will send you a CP508C Notice, indicating your certification. You have a 90-day window to resolve your tax issues before the State Department takes action on your passport. It's critical to respond to this notice promptly.

Exceptions to Certification
Not all taxpayers with significant tax debt will have their passports certified. Exceptions include those who are:
  • In bankruptcy.
  • Victims of tax-related identity theft.
  • Determined by the IRS as currently not collectible.
  • Living in a federally declared disaster area.
  • Having a pending installment agreement or Offer in Compromise.
  • Serving in a designated combat zone or contingency operation.
Resolving Your Tax Debt
To avoid or reverse passport certification, you can:
  • Pay Your Tax Debt in Full: Clearing your balance immediately removes the certification.
  • Negotiate an Installment Agreement: Set up a payment plan with the IRS.
  • Submit an Offer in Compromise: Settle your tax debt for less than the full amount owed.
  • Prove Certification Error: Demonstrate that the certification was made in error or your tax debt is not seriously delinquent.
Expedited Reversal for Urgent Travel
If you need your passport urgently, the IRS can expedite the reversal process within 14 to 21 days if you have imminent travel plans (within 45 days). You'll need to provide proof of travel and a copy of the denial or revocation letter from the State Department.

Next Steps and Getting Assistance
Receiving an IRS notice about your passport can be daunting, but quick action can prevent travel disruptions. If you resolve your tax debt, the IRS will send a CP508R Notice, indicating the reversal of your certification. Keep this notice for your records and continue to comply with any agreements to avoid future issues.
Navigating IRS procedures can be complex, but we’re here to help! Consulting with an IRS tax resolution firm like Advanced Tax Solutions can provide the necessary guidance and support to manage your situation effectively. We can help negotiate with the IRS and ensure your travel plans remain intact.
Take control of your tax issues today and secure your passport for future travel. For professional assistance, contact Advanced Tax Solutions at 303-753-6040. 

Want to learn more? Read this CNBC article with insight from Todd Whalen, Founder of Advanced Tax Solutions.
 
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