Beyond booking your flights and packing your bags, you need a valid passport for international trips. Usually, getting a passport is a fairly straightforward process, aside from the time you may need to wait for processing. However, many travelers don’t realize that unpaid tax debt can sometimes interfere with their ability to get their passport application approved. Understanding the IRS guidelines on unpaid taxes, passport applications, and renewals can help you avoid unexpected travel disruptions and prepare you to stand on your passport rights.
If you owe back taxes, you can still get a passport. However, the IRS, in partnership with the U.S. State Department, can deny, revoke, or restrict the passport of any taxpayer if the IRS considers their tax debt to be “seriously delinquent.”
If you owe back taxes and are concerned about travel restrictions, you should take action now. Our tax attorneys at Victory Tax Lawyers specialize in tax relief services and can help you resolve your IRS debt before it impacts your passport. You can book a free consultation today if you need legal guidance.
In this post, you’ll learn everything you need to maintain your passport rights even if you owe back taxes. We’ll also break down in detail the steps you need to take if your passport is on the line.
What the IRS Considers a Seriously Delinquent Tax Debt
Thankfully, the IRS doesn’t classify all tax debt as being “seriously delinquent.” The IRS defines a seriously delinquent tax debt as an unpaid federal tax debt of $64,000 or more, including penalties and interest (this figure is adjusted each year for inflation).
If you get to this threshold, the IRS will certify your debt to the State Department, which can take action against your passport. Note that only federal tax debt can be classified as seriously delinquent. This means that your passport won’t be affected if you owe non-federal tax debt, like back property taxes or state taxes. And for your taxes to be considered seriously delinquent, the IRS must have either filed a Notice of Federal Tax Lien against you and you have exhausted all administrative remedies under the law to contest it, or it has issued a levy in its efforts to collect these debts.
Once the IRS certifies a taxpayer’s tax debt as “seriously delinquent” to the State Department, the taxpayer must either fully pay the balance or make alternative payment arrangements, such as setting up an installment agreement or an OIC, to have the certification reversed.
How Do I Know If I Have a Seriously Delinquent Tax Bill?
The IRS will typically notify you if you have a seriously delinquent tax bill and it has certified your debt to the state department by sending you a Notice CP508C. The notice, also called a Passport Denial Letter, serves as your official warning that your passport may be at risk and is typically sent by mail to your last known address as of the time of the certification. Note that the IRS will not send this notice to your legal representative, even if you have a power of attorney (POA) on file. So you want to keep active tabs on your IRS correspondence so you don’t miss it.
If You Owe Back Taxes, Can You Get a Passport?
In most cases, if the IRS certifies your tax debt as seriously delinquent, the State Department may deny your passport application or revoke your current passport. However, not all back taxes meet this threshold, meaning some taxpayers with back taxes may still be eligible for a passport.
Exceptions and Exemptions: When You Can Still Get a Passport
The following debts are excluded from IRS certification to the State Department:
- Unpaid child support
- Debts being timely paid through an IRS-approved installment agreement or with an offer in compromise accepted by the IRS,
- Report of Foreign Bank and Financial Account (FBAR) penalties,
- Settlement agreements entered into with the Department of Justice,
- Debts for which a collection due process hearing regarding a levy to collect the debt has been timely requested.
- Taxes that are suspended because of a request for innocent spouse relief.
Moreover, the IRS will not certify anyone as owing a seriously delinquent tax debt when such a person:
- Has a request pending with the IRS for an installment agreement or offer in compromise
- Has a pending tax dispute or appeal.
- Has been identified as a victim of tax-related identity theft,
- Is in bankruptcy,
- Is located within a federally declared disaster area, or
- Has an IRS accepted adjustment that will fully satisfy their tax debt.
- The IRS will also postpone certification for taxpayers serving in a designated combat zone or participating in a contingency operation.
If you’re overseas and need to travel urgently, the State Department may issue you a limited-validity passport, allowing you to return directly to the United States. This exception is primarily for those:
- Medical emergencies requiring immediate travel
- Humanitarian crises
- Situations where denial would cause undue hardship
However, these cases are handled on an exception basis, and there are no guarantees that your request will be approved. Consulting an experienced tax attorney can help you expedite the resolution of your tax debt and restore your full passport rights. Book a free consultation with a tax attorney here.
How to Resolve IRS Tax Debt & Get Your Passport Back
If your passport has been denied or is at risk due to seriously delinquent tax debt, there are several ways to resolve your tax issues and restore your passport rights. One of the most effective steps is to hire a tax attorney who can negotiate with the IRS on your behalf. A tax attorney can negotiate directly with the IRS on your behalf and explore legal avenues to reduce or restructure your debt. With their expertise, they can assess your unique financial situation, identify potential exemptions, and develop a strategy that will get you the best outcome possible based on your situation and the options at your disposal.
If you have the means, paying off your tax debt in full is the fastest way to remove the IRS certification and regain your passport. Once you’ve cleared your balance, the IRS will typically notify the State Department within 30 days to lift the restriction.
Apparently, this isn’t an option for every taxpayer. Luckily, there are other options a non-filer can employ. Once you’ve paid your tax debt, you’re to notify the IRS by sending your proof of payment to the address on the notice CP508C.
And if paying in full is not an option, the IRS offers several resolution options for taxpayers to manage their debt burden. One of the most effective methods is enrolling in an IRS payment plan. There are several payment plans, also known as installment agreements, all of which count for these purposes.
Installment agreements allow you to pay what you owe over an extended period, making repayment more manageable. Once the IRS approves your installment agreement and you remain in compliance with the payment terms, it will decertify your debt and remove any restrictions on your passport.
Another popular resolution option is submitting an Offer in Compromise to the IRS. An OIC allows you to settle your tax debt for less than you owe. However, the IRS has strict eligibility guidelines surrounding the approval process, so not everyone qualifies. If you qualify, however, and the IRS accepts your offer, it takes out the “serious delinquency” status, reverses the certification, and gives you full passport rights once again.
For some taxpayers, requesting innocent spouse relief may be an option. If your tax debt resulted from your spouse’s actions, you may qualify for relief, which could lead to the removal of the IRS certification affecting your passport.
Another alternative route you could take is filing for Currently Not Collectible Status (CNCS). If you can prove that you’re currently going through severe financial hardship and paying your tax debt at this time will make it nearly impossible to take care of your daily living expenses, the IRS may give you a break. Note that the CNNS status doesn’t automatically cancel out your tax debts; in fact, nothing changes with your unpaid balance. It simply halts collection actions on your account for the duration of the CNCS status.
If you’re facing passport restrictions due to tax debt, don’t hesitate to take action, you can restore your passport rights. Not sure of the way forward? Book a free consultation today.
What to Do if Your Passport Is Denied or Revoked Due to Tax Debt
If your passport is denied or revoked due to tax debt, you must resolve your tax debt with the IRS by paying in full or setting up a payment plan.
Facing a passport denial or revocation due to tax debt can be a stressful experience, especially if you have upcoming travel plans. However, there are clear steps you can take to resolve the issue and restore your passport rights.
How to Check Your Tax Status With the IRS
Before taking any action, confirm whether your tax debt has been certified as seriously delinquent. Here’s how you can go about it:
- Review Your IRS Notices: If your tax debt has been certified to the State Department, you should have received IRS Notice CP508C. This letter serves as an official warning that your passport is at risk. You should check your mail for this notice, as one thing the IRS wouldn’t fail to do is send you correspondence before and after it makes a move.
- Log into Your IRS Online Account: You can visit the IRS website to check your outstanding balance and payment status.
- Call the IRS: Alternatively, you can contact the IRS Collection Division at 1-800-829-1040 to inquire about your tax debt and certification status.
- Contact the State Department for passport status updates: You can also reach out to the U.S. State Department to verify your application status or ask any questions you may have. To do so, simply log onto their website or call the National Passport Center toll-free at 1-877-487-2778.
- Consult a Tax Attorney: If you’ve confirmed that your passport has been revoked or denied, or you’re unsure about your status and need help going forward, a tax attorney can provide you with all the guidance necessary to take steps in the right direction.
Requesting Expedited Resolution In Urgent Travel Situations
The IRS will only approve an expedited request to reverse a passport certification under specific circumstances. If you have international travel planned within the next 45 days or currently live abroad and need a valid passport for residency, work, or other legal reasons, you may qualify for expedited processing. Also, if you have already submitted a passport application or renewal request that was denied due to IRS certification, you may also be eligible for a faster reversal. If you need to travel and plan to expedite the decertification, then you should:
1. Contact The IRS Immediately
Contact the IRS as soon as possible so they can resolve your seriously delinquent tax debt status. You can do this by calling their phone line at 1-800-829-1040 or calling the numbers on your Notice CP508C (855-519-4965 or 267-941-1004 for international callers).
2. Provide Required Documentation
Usually, when requesting an expedited decertification, you’d be required to provide the following documents to the IRS:
When requesting an expedited decertification, the IRS typically requires certain documents as proof of urgency. One of the key documents is proof of travel, which can include a flight itinerary, hotel reservation, cruise ticket, international car insurance, or any other record that clearly displays your name, travel destination, and the approximate date of travel or time-sensitive need for a passport. Additionally, you must provide a copy of the denial or revocation letter from the U.S. State Department. This letter, dated within the last 90 days, serves as confirmation that your passport application is still active and has been affected by IRS certification.
3. Resolve Your Tax Debt
You must resolve your tax issue before the IRS will decertify you. The IRS will reverse a certification when your tax debt has been paid in full or has become legally unenforceable, you have entered a satisfactory payment arrangement with the IRS, the tax debt is no longer seriously delinquent, or the certification is erroneous.
Need a Tax Attorney to Resolve Your Back Taxes?
Owing back taxes doesn’t automatically mean your passport gets restricted, but if your tax debt is classified as “seriously delinquent” by the IRS, the State Department can deny, revoke, or restrict your passport. However, there’s a way out! Setting up an installment agreement, or qualifying for an Offer in Compromise can restore your passport rights. And in cases of bankruptcy or financial hardship, you may also qualify for exemptions.
So, if you’re already on the IRS grid for unpaid tax debt, don’t wait until your passport rights are withdrawn. Our attorneys at Victory Tax Lawyers are recognized as one of the Best Tax Lawyers for back taxes and can help you explore relief options available to settle your tax debt. Contact us to schedule a free consultation today.
Frequently Asked Questions (FAQs)
Can I Travel Internationally if I Owe Taxes but Haven’t Reached the Threshold?
Your passport will not be affected if your tax debt does not meet the IRS threshold for seriously delinquent tax debt. However, your owing back taxes may still lead to other severe consequences, such as wage garnishments, liens, or levies. So, while you can still travel internationally, you don’t want to ignore your tax debt, as doing so never ends well for you.
What if I Need a Passport for Work but Owe Back Taxes?
If your passport is critical for your job, perhaps you’re involved in international business, government work, or travel-related work, an IRS’s restrictions may pose a problem. Once the IRS certifies your tax debt as seriously delinquent, you lose your passport rights, and you must fully pay the balance or make alternative payment arrangements to have the certification reversed. Several options are available to clear your back taxes and lift a passport ban. It’s important to speak with your tax attorney to see how best to move forward and keep your passport rights intact while resolving your back taxes.
How Long Does It Take for the IRS to Lift a Passport Restriction?
The timeline for having your passport restrictions lifted depends on how quickly you’re able to resolve your tax issues, either by paying your balance in full or by applying for one of the IRS’s hardship and tax forgiveness programs. Typically, once the IRS confirms that the tax debt is no longer seriously delinquent, it will go on to reverse the decertification. The IRS will make this reversal within 30 days and provide notification to the State Department as soon as practicable.
Will the IRS Notify Me Before Certifying My Tax Debt?
Yes, the IRS is required to send a notice called a CP508C to you. Notice CP508C informs you that your tax debt has been certified as seriously delinquent and forwarded to the State Department.
Can My Employer Revoke My Passport Over Unpaid Taxes?
No, your employer cannot revoke your passport. The State Department, in partnership with the IRS, has the sole authority to issue, limit, deny, or revoke passports. Your employer can only enforce certain collection actions like wage garnishment, but they do not have the authority to revoke your passport.
