Passports and Tax Debt

Taxpayers with significant tax debt, currently $52,000 or more , could
start seeing some issues traveling outside of the United States. Under
the Fixing America’s Surface Transportation (FAST) Act, the IRS notifies
the State Department (State) of taxpayers certified as owing a seriously
delinquent tax debt, then requires State to deny their passport
application or renewal. If a taxpayer currently has a valid passport,
State may revoke the passport or limit a taxpayer’s ability to travel
outside the United States. The IRS will send Letter 6152, Notice of
Intent to Request U.S. Department of State Revoke Your Passport, to the
taxpayer to let them know what the IRS intends to do and give them
another opportunity to resolve their debts .

Taxpayers who have immediate travel plans, and had their passports
denied by the State, need to call the IRS immediately. The IRS can help
expedite reversal and could possibly shorten the process from 30 days to
14 to 21 days. Taxpayers will need to inform the IRS that they have
travel scheduled within 45 days or that they live abroad. They need to
show proof of travel, this can be a flight itinerary, hotel reservation,
cruise ticket, international car insurance or other document showing
location and approximate date of travel or time-sensitive need for a
passport. Along with Copy of letter from State denying their passport
application or revoking their passport. State has sole authority to
issue, limit, deny or revoke a passport.

Taxpayers with significant debt will receive a Notice CP508C from the
IRS. The notice explains what steps the taxpayer needs to take to
resolve the debt. The IRS has multiple ways to help resolve major debt
including payment plans, and offer in compromise. But there are many
reasons for the IRS to not expedite reversal. Taxpayers who are in
bankruptcy, identified by the IRS as a victim of identity fraud, and
more. Calling the IRS will help explain what options are available.