Updated: Jun 16
Revocation or Denial of Passport in Case of Certain Unpaid Taxes under §7345
§7345 was enacted as part of the 2015 Fixing America’s Surface Transportation act (FAST). The IRS will certify to the State Department those Taxpayers with a ‘seriously delinquent tax debt’ and the State Department is then authorized to:
· Deny applications for a passport,
· Revoke a current passport, or
· If the taxpayer is overseas, they may issue a limited validity passport good only for direct return to the US.
A seriously delinquent tax debt under §7345(b)(1) is an individual's unpaid, legally enforceable federal tax debt (including interest and penalties) totaling more than $54,000 (adjusted yearly for inflation) for which a:
· Notice of federal tax lien has been filed and all administrative remedies under the law have lapsed or have been exhausted, or
· Levy has been issued.
The IRS will notify the taxpayer of the certification with Notice CP508C, ‘Notice of Certification of Your Seriously Delinquent Federal Tax Debt to the State Department’.
Some tax debts are not included such as taxpayers with IRS approved installment agreements or Offers in Compromise. The IRS will also not certify to the State Department anyone who is in bankruptcy, a victim of identity theft or has a pending OIC or installment agreement.
IRS Resumes Certification of Tax Debt to State Department March 14,2021
After suspending certain collection activities with the March 25, 2020, ‘People First Initiative’ announcement in response to COVID-19, the IRS has resumed normal activities the week of March 14, 2021.
The IRS began notifying the State Department of taxpayers certified as owing seriously delinquent tax debt and began sending Notice CP508C to affected taxpayers.