Passport Revocation or Denial for IRS Tax Debt

Owing to the passing of a new law in the Fixing America’s Surface Transport (FAST) Act, the Internal Revenue Service (IRS) is urging taxpayers to resolve any significant tax debts to avoid having their passports revoked which may cause delays in their travel plans.

Under this new passport revocation or denial process, the IRS will notify the State Department of any taxpayers owing a delinquent IRS tax debt of $52,000 or more. The State Department is then required to deny delinquent taxpayers’ applications or renewals of US Passport for international travel. If a taxpayer has a valid passport, the use of their passport may be taken away and/or denied at the port of entry or exit, or the State Department may limit the taxpayer’s ability to travel outside of the United States.

When the IRS has certified a taxpayer as owing a delinquent IRS tax debt, the taxpayer will receive a Notice CP508C, Notice of Certification of your Seriously Delinquent Federal Tax Debt to the State Department, from the IRS explaining what steps need to be taken to resolve the debt. Do not delay in resolving your tax debt problems because some tax resolutions take longer than others, and it is especially important for taxpayers with forthcoming travel plans who have had their passport applications denied to speak to an IRS tax attorney so that their passport is not revoked.

In certain cases, the reversal of IRS certification to the State Department could be processed quicker to reverse any Passport denials. IRS can shorten the processing time to less than 30 days if they have certain important travel scheduled within 45 days and can provide the following documents:

• Copy of Letter from the State Department denying the taxpayer’s passport application or revoking their passport.
• Proof of Travel such as any document showing location and date of travel or time-sensitive need for a passport.

IRS Can Revoke Your Passport at Anytime

While the State Department is the sole authority for anything passport related, the IRS may ask the State Department to use its authority to revoke a taxpayer’s US passport. The IRS may recommend revocation of a taxpayer’s passport if the IRS had previously reversed a taxpayer’s certification because of a promise to pay, and the taxpayer failed to pay. The IRS may also recommend revocation of a passport if the taxpayer can use offshore assets to pay the delinquent tax debt but chooses not to use those assets.

How to Prevent US Passport Revocation of Denial by IRS

Before contacting the State Department, the IRS will send Letter 6152, Notice of Intent to Request U.S. Department of State Revoke Your Passport, to the taxpayer giving another opportunity to resolve the debt. There are several ways taxpayers can avoid having the IRS notify the State Department of delinquent tax debts. They include:

• IRS tax debt is paid in full.
• Negotiate an IRS Installment Agreement with history of tax payments.
• IRS offer in compromise is accepted and paid under the terms of the OIC.
• Paying the tax debt in a timely manner under the terms of a settlement agreement with the Department of Justice,.
• Initiate a collection due process or an appeal with the IRS for a wrongful tax lien or tax levy.
• Request for IRS innocent spouse claim has been properly filed.

How to Reverse US Passport Revocation or Denial Decision:
1) IRS Installment agreement. Expedited IRS Installment Agreement via 433A or with the IRS Form 9465. This form can be downloaded from irs.gov and mailed along with a tax return, bill, or notice. Eligible taxpayers can use the Online Payment Agreement system to set up a monthly payment agreement which is cheaper and can save time.

2) Offer in Compromise (OIC). Some taxpayers may qualify for an OIC. An OIC is an agreement between a taxpayer and the IRS settling the tax liability for less than the full amount owed. The IRS will look at the taxpayers income and assets to determine the taxpayer’s ability to pay.

US Passport Will Not Be Revoked:
The IRS will not prevent any taxpayers owing delinquent tax debt from obtaining their passports if the following conditions apply:

1) Taxpayer is in a pending Chapter 7, 11 or 13 bankruptcy,
2) Passport applicant is identified by the IRS as a victim of tax related identity theft,
3) Whose account the IRS has determined is currently not collectible due to hardship,
4) Who’s located w/in a federally declared disaster area,
5) Who has a request pending with the IRS for an installment agreement,
6) Who has a pending OIC with the IRS,
7) Who has an IRS accepted adjustment that will satisfy the debt in full.
8) Military personnel currently serving in a combat zone, the IRS will postpone notifying the State Department of the delinquency and their passport will not be denied during the time of
service in a combat zone.