Passport Revocations Under Section 7345

One of the little-known tools in the IRS collection tool belt is the ability to revoke a taxpayer’s passport where the taxpayer has a “seriously delinquent tax debt.”

Congress passed Section 7345 in 2015.  In certain situations of unpaid tax, the statute authorizes the IRS to certify that debt to the State Department for action.  The State Department generally will not issue a passport to a taxpayer after receiving such certification from the IRS. The State Department may deny a taxpayer’s passport application or even revoke a current passport.

What Tax Debt Qualifies?

The IRS certifies “seriously delinquent tax debt” to the State Department. “Seriously delinquent tax debt” is an individual’s unpaid, legally enforceable federal tax debt (including interest and penalties) totaling more than $55,000 (adjusted yearly for inflation) for which:  (1) A notice of federal tax lien has been filed and all administrative remedies under the law have lapsed or have been exhausted; or (2) A levy has been issued.

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