When taxpayer’s have IRS Debt, the IRS has a number of tools to use to collect the debt. Those include levies, liens, and can also include revoking the taxpayer’s passport. For some taxpayers, this is not a major threat. For others, there can be a substantial impact including harming a taxpayer’s ability to earn a living and visit loved ones and can be a major reason for dealing quickly and effectively with tax debts.
Who Should Be Concerned?
If you owe a seriously delinquent tax debt, which is currently $52,000 or more, the IRS will notify the State Department and the taxpayer does not have an active installment agreement with the IRS nor there is a hold on Collection, under the Fixing America’s Surface Transportation ACT (FAST ACT), the IRS is to notify the State Department of the delinquent debt and the State Department is required to deny any passport applications or renewals from the taxpayer. The State Department may revoke a passport or limit travel outside the US as well.
What’s the Process?
As noted above, the IRS is required to “Certify” to the State Department when a Taxpayer qualifies under the ACT as having seriously delinquent tax debt. When the IRS does so, they will send a Notice CP508C to the Taxpayer notifying the taxpayer of the action and what they can do to resolve the issue. It is important to address the issue promptly as taking care of the issue and reversing the certification can take several weeks or months.
What Can a Taxpayer Do to Reverse the Certification?
Some actions that can be taken to get the action reversed temporarily or permanently include:
- Satisfy the tax debt or reduce it below the seriously delinquent amount.
- Enter into an Installment Agreement to pay back the IRS over time.
- Get an Offer-In-Compromise accepted to eliminate the debt.
- Collection is suspended due to the request of Innocent Spouse Relief.
- The Taxpayer makes a timely request for a CDP Hearing.
- The certification and/or tax debt is in error.
Do You Need Help?
If you have had your passport revoked, are unable to get it renewed, or have any other IRS issue, I can help you work through the problem and get back on track. Please give me a call at (972) 821-1991 or email me at [email protected].