Does Owing Money to the IRS Affect Recertification of Passport

Those who have unpaid tax bills probably shouldn’t make overseas vacation plans because that bill could prompt the authorities to reject your application for a new passport or revoke your current one. Taxpayers with a seriously high tax debt could be referred by the IRS to the State Department, which won’t issue a passport after receiving the certification. In case you are already enjoying yourself somewhere overseas, the State Department will issue you a limited validity passport that will only take you back to the United States.

Recertification of Your Passport Depends on How Much Money You Owe

Taxpayers who owe a lot of money (greater than $50,000 in interest, penalties, and back taxes) may be denied a passport. The legal action regarding taxes and passports stems from a 2015 law that requires the State Department to revoke or deny passports to taxpayers who owe a substantial sum. As soon as the IRS deems the sum you owe a delinquent tax debt, the law will affect you. To find out more about the related details, visit this page.

How Can I Prevent Being Declared Seriously Delinquent in Taxes

To avoid this nuisance, there are certain loopholes in the law that will help you avoid being declared delinquent in taxes:

  • Issuing a request for due process collection hearing within a reasonable time frame regarding a levy to collect the debt;
  • Setting up a payment plan (IRS-approved) to pay back your tax debt;
  • Issuing a request for innocent spouse relief that will suspend tax collection;
  • IRS-approved offer in compromise.

Your passport will not be at risk if any of the following factors apply to you:

  • You have a pending request for an offer in compromise with the IRS
  • You have a pending request with the IRS for an installment agreement
  • You’re located within a federally declared disaster area
  • IRS has identified you as a victim of tax-related identity theft
  • Bankruptcy
  • You have an IRS-accepted adjustment that will pay back the outstanding amount in full
  • The IRS has determined your situation as currently not collectible due to hardship

If the amount you owe is considered a seriously delinquent tax debt, and you’ve submitted a passport application, the State Department will hold the application for 90 days. During that period, you have the chance to pay the sum back, agree on a payment arrangement with the IRS, or resolve any certification issues. Taxpayers who know they’ll need a passport and who owe more than $50,000 in taxes, interest, and penalties should act quickly to make sure their passport is not revoked before the trip. At the time the IRS declares you delinquent, they are required to contact you in writing by sending you a Notice CP 508C. If you have received the notice, be sure to call the number on it. If you have a current passport and haven’t received that notice, you’re able to use the passport until you’ve been notified.

For those who already had their passports revoked or cancelled, you have 3 options:

  • Pay the debt in full
  • Settle on a payment arrangement with the IRS for paying the debt
  • Prove that the certification is erroneous

Within 30 days, the IRS will be able to reverse your certification and notify the State Department.

Contact Golden Tax Relief if your passport was cancelled or revoked. Our legal professionals will negotiate on your behalf to identify the best way to get your certification reversed.

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