Did you know that your IRS tax debt could prevent you from renewing your passport?  The IRS has been talking about doing this for years and beginning in February of 2018, the IRS began certifying tax debt to the State Department for seriously delinquent taxpayers, which could result in a denial of your passport renewal.

However, not all taxpayers who owe the IRS money will have their passports denied. Read on to determine whether your passport is at risk.

Your Tax Debt Must Be Seriously Delinquent

First, your tax debt, penalties, and interest must exceed $52,000 to be considered seriously delinquent. If you owe less than this amount, your passport is safe for now.

The IRS also needs to either file a Notice of Federal Tax Lien or a tax levy. Once your appeal options expire or are exhausted, your tax debt can be considered seriously delinquent.

Even if you meet these two criteria, there are a number of ways you can avoid certification of your tax debt to the State Department. Consult a tax attorney to avoid a certification and resolve your tax problems.

IRS Certifies Tax Debt

The IRS must send you a notice when it certifies your tax debt. Unless this notice is sent, your passport can’t be revoked or denied.

Note that if your passport is revoked while you are overseas, you may be issued a limited passport that allows you to return to the United States. However, you won’t be able to keep traveling overseas, even if you are required to do so for your job or business.

If you receive Notice CP508C, call a tax attorney immediately so you can try to fix the issue before your passport is denied.

90 Days To Fix Your Tax Problems

The State Department will hold your application for 90 days before your passport can be denied. This gives you an opportunity to dispute an erroneous certification, pay your tax debt in full, or enter into a payment arrangement. Any of these alternatives could allow you to keep your passport.

You won’t be able to just pay your balance below $52,000 to avoid certification, but you can apply for a payment plan, submit an Offer in Compromise, or request innocent spouse relief. If your passport is denied, you can still get the certification reversed using any of these tax resolution strategies.

Have a question? Contact Venar Ayar.