If you have unpaid taxes, it could affect more than just your bank account—it could impact your ability to travel internationally. The IRS is now certifying certain taxpayers with seriously delinquent tax balances to the State Department, which could result in the denial or revocation of a U.S. passport. Let’s break down what this means and what you can do if you find yourself in this situation.
What Are Seriously Delinquent Tax Balances?
A "seriously delinquent tax balance" refers to unpaid federal taxes, including penalties and interest, that total more than $64,000 (this amount is adjusted annually for inflation). This includes individual income taxes, trust fund recovery penalties, business taxes for which you're personally liable, and other civil penalties. To be classified as seriously delinquent, the IRS must have filed a Notice of Federal Tax Lien or issued a levy in an attempt to collect the balance.
Which Tax Balances Are Not Certified to the State Department?
Not all tax balances are sent to the State Department. The IRS does not certify:
- Child support
- Balances being paid through an approved installment agreement or offer in compromise
- Penalties for failing to report foreign bank accounts (FBAR)
- Balances under a settlement with the Department of Justice
- Tax balances for which a collection due process hearing is pending
- Certain other situations like bankruptcy or identity theft
How Does This Process Work?
If the IRS certifies you have seriously delinquent tax balances, they’ll send a CP508C notice to your last known address. This notice informs you that your tax balance has been reported to the State Department. If you apply for or renew a passport after this certification, the State Department will send you a letter notifying you that your application is being held for 90 days while you address the balance. During this time, you can:
- Set up a payment arrangement with the IRS
- Pay off the balance in full
- Resolve any certification errors
If you don’t act within 90 days, your application will be denied, and you'll need to reapply once the issue is resolved.
What Happens If You’re Overseas?
If you’re already overseas when your tax balance is certified, the State Department may issue a limited-validity passport to allow you to return to the U.S. directly.
Can You Expedite This Process If You Have Imminent Travel Plans?
If you need to travel internationally within the next 45 days, you can request expedited processing to reverse the certification. To do this, you’ll need to provide:
- Proof of your travel plans (flight itinerary, hotel reservations, etc.)
- A copy of the letter from the State Department denying or revoking your passport
If everything checks out, the IRS can expedite the decertification process by 14 to 21 days, allowing you to travel as planned.
What If You Disagree with the Certification?
If you believe the certification is in error or you’ve paid the balance, you can contact the IRS to resolve the issue. The IRS will review your case and may reverse the certification if:
- The balance is paid off
- The balance is legally unenforceable
- The certification was incorrect
The IRS will notify the State Department when this happens.
What Can You Do if Your Passport Is Denied or Revoked?
If your passport application is denied, or your passport is revoked, the State Department will notify you in writing. You must fully pay off your balance or set up an alternative payment arrangement with the IRS to have the certification reversed.
Judicial Review of Certification
If the IRS doesn’t reverse the certification when it should, you can file a lawsuit in U.S. Tax Court or a U.S. District Court to challenge the certification. However, courts cannot release liens or award damages in these cases.
Final Thoughts
The IRS’s passport certification process is a serious matter that can limit your ability to travel internationally. If you find yourself with a seriously delinquent tax balance, it’s important to resolve the issue quickly to avoid having your passport denied or revoked. The IRS offers options for payment arrangements, and if you’re facing this situation, taking action sooner rather than later can help you keep your travel plans intact.