The IRS is getting ready to revoke or deny passports for taxpayers with seriously delinquent tax debts. Here’s what you need to know.
Any individual with a tax debt of more than $50,000 (including penalties and interest) who has a federal tax lien filed against them or a tax levy issued to them, unless they meet the following criteria:
- Entered into an installment agreement with the IRS
- Acceptance of an offer in compromise by the IRS or a settlement agreement with the Justice Department
- Requested a timely collection due process hearing in connection to a tax levy
- Suspended collection by the IRS due to request for innocent spouse relief
Taxpayers who meet the above criteria will receive an IRS notice CP 508C via regular mail to their last known address. This letter will notify the taxpayer that their tax debt is now considered seriously delinquent and therefore will have their passport revoked or their passport application denied.
The IRS has not yet released the date that passport revocations will begin, however it will be sometime in 2017.
The IRS will notify the State Department, who will then deny your passport application and/or revoke your current passport. You will receive notice from the IRS via regular mail.
The IRS passport revocation initiative is part of the FAST Act that was passed in late 2015. This law was created to provide long-term funding for surface transportation infrastructure planning and investment. Read more about the FAST Act here.
To learn more about the IRS passport revocation, click here. If you have a seriously delinquent tax debt and need help resolving it, contact us today.