Has the IRS Threatened to Revoke or Restrict Your Passport? Here is What You Need to Know

Among the collection tools the IRS has is the threat of revocation of your passport if your account is seriously delinquent. If you have “Seriously Delinquent Tax Debt†the IRS will “certify†to the State Department the status of your account, which may result in the denial, revocation, or limitation of your passport.

What constitutes “Seriously Delinquent Tax Debt?â€

Seriously Delinquent Tax Debt is federal tax debt, including assessed penalties and interest, that exceeds $62,000 (as of 2024) and for which a lien or levy has been issued and appeals have been exhausted.

Exemptions to Certification

There are exemptions contained in the Internal Revenue Code and in the Internal Revenue Manual that serve to exempt from certification most taxpayers who are trying to resolve their tax debt as follows:

1. The debt is being paid in a timely manner as part of an installment agreement.
2. The debt is being paid in a timely manner as part of an Offer in Compromise that has been accepted by the IRS.
3. The debt is being paid in a timely manner as part of a settlement agreement entered into with the Department of Justice.
4. The debt is subject to a levy for which collection has been suspended pending a Collection Due Process Hearing.
5. The debt collection has been suspended due to a claim for Innocent Spouse Relief.
6. If the taxpayer is serving in a combat zone, certification is postponed.
7. The debt is considered Currently Not Collectible due to hardship.
8. The debt resulted from identity theft.
9. The taxpayer is in bankruptcy.
10. The debt is in a pending Offer in Compromise (the offer has been submitted, but not yet accepted by the IRS).
11. Debt is included in a pending Installment Agreement.
12. The debt has a pending adjustment that will fully pay the tax period.

It’s important to note that the IRS will generally provide notice and an opportunity to resolve the tax debt before taking action against your passport.

What if the IRS has already certified your case to the State Department?

If the IRS has certified your account as a Seriously Delinquent Tax Debt, you may be able to have it reversed. To reverse a certification one of the statutory exclusions must apply to your account:

1. The tax debt is paid in full. A partial payment that brings the balance to less than the threshold to certify your debt ($62,000 in 2024) will not cause the reversal of the certification.
2. The tax debt becomes legally unenforceable. For example, if the statute of limitations for collection has expired.
3. The tax debt ceases to be classified as a seriously delinquent tax debt. This occurs if one of the statutory exclusions to certification applies. The statutory exclusions are as follows:
   a. The debt is being paid in a timely manner as part of an installment agreement.
   b. The debt is being paid in a timely manner as part of an Offer in Compromise that has been accepted by the IRS.
   c. The debt is being paid in a timely manner as part of a settlement agreement entered into with the Department of Justice.
   d. The debt is subject to a levy for which collection has been suspended pending a Collection Due Process Hearing.
   e. The debt collection has been suspended due to a claim for Innocent Spouse Relief.

Note: Once your case has been certified as a Seriously Delinquent Tax Debt, the discretionary exemptions that apply upon initial certification cannot be used to reverse a certification.

Questions Regarding Certification of Your Case

If you are concerned that your case may soon be certified to the State Department as a Seriously Delinquent Tax Debt, or if your passport has already been restricted, contact me for assistance.