Do You Owe Money to the IRS? If Yes, Your Passport May be Revoked

Posted on October 08, 2018

If you owe money to the IRS, under certain circumstances the State Department can deny your application for a new or renewed passport or revoke or limit a previously issued passport. Internal Revenue Code section 7345 was enacted on December 4, 2015, which provided that a taxpayer who has a “seriously delinquent” tax liability can lose their passport or their application for a passport can be rejected if they owe $50,000.00 or more to the IRS. Although this provision was enacted, no meaningful action was taken to implement this law. However, that has now changed. Effective beginning in January of 2018, the IRS will notify the State Department of a “seriously delinquent” tax liability. The State Department will then notify the individual that they have 90 days to resolve the tax delinquency before taking any action. If an individual needs a passport to travel within 90 days, they must resolve the tax delinquency within 45 days of the date they apply for their passport. To be certified as an individually with a “seriously delinquent” tax liability, they must owe more than $50,000.00, a Notice of Federal Tax Lien must have been filed or a levy must have been issued. The total amount due to the IRS includes the aggregate of all current tax obligations, including penalties and interest. A “seriously delinquent” tax debt does not include a debt to the IRS that is under an approved installment agreement, an approved Offer in Compromise or a settlement agreement with the Department of Justice. Further, a “seriously delinquent” tax debt does not include any liability that is currently under a Request for a Collection Due Process Hearing or a Request for Innocent Spouse Relief. Do you have a passport and owe more than $50,000.00 to the IRS? Call us, we can help. Call us before the IRS calls you!®