Starting this month, the IRS now has the ability to have your passport revoked! If the IRS determines that you have a seriously delinquent tax debt, they will certify that debt to the State Department who will deny your passport application and/or revoke your current passport.
Seriously delinquent tax debt is currently defined as an individual's unpaid federal tax debt totaling $51,000.00 or more (adjusted annually for inflation) including interest and penalties for which:
- A notice of federal tax lien has been filed and all administrative remedies have lapsed or been exhausted; or
- A levy has been issued.
There are some exceptions to having your passport revoked, such as:
- Taxpayers who are making monthly payments pursuant to an installment payment agreement with the IRS;
- Taxpayers who have had an offer in compromise accepted by the IRS;
- Taxpayers who have timely requested a collection due process hearing; and
- Taxpayers who have requested innocent spouse relief.
Before denying a passport, the State Department will hold your application for 90 days to allow you to:
- Resolve any erroneous certification issues;
- Make full payment of the tax debt; or
- Enter into a collection alternative with the IRS.
The IRS is required to notify you in writing at the time it certifies seriously delinquent tax debt to the State Department. The IRS will send written notice by regular mail to your last known address.
If your U.S. passport application is denied or your U.S. passport is revoked, the State Department will likewise notify you in writing.
If the IRS certified your debt to the State Department, you can challenge it by filing a tax lawsuit in either the U.S. Tax Court or a U.S. District Court. The Court will then determine whether the certification was erroneous or that the IRS failed to reverse the certification when it was required to do so. If the court determines the certification is erroneous or should be reversed, it can order the IRS to notify the State Department that the certification was in error.
Do not wait until it’s too late! Call or email Wynne Law, P.C. today to discuss what options you have to avoid having your passport revoked.