IRS: Tax debt could lead to passport revocation

The Internal Revenue Service is urging taxpayers to resolve their significant tax debts to avoid putting their passports in jeopardy.

They should contact the IRS now to avoid delays in their travel plans later, the IRS said in an announcement earlier this month.

Under the Fixing America’s Surface Transportation (FAST) Act, the IRS notifies the State Department of taxpayers certified as owing a seriously delinquent tax debt, which is currently $52,000 or more.

The law then requires the State Department to deny their passport application or renewal. If a taxpayer currently has a valid passport, the State Department may revoke the passport or limit a taxpayer’s ability to travel outside the United States, the IRS said.

When the IRS certifies a taxpayer to the State Department as owing a seriously delinquent tax debt, the taxpayer receives a Notice CP508C from the IRS. The notice explains what steps the taxpayer needs to take to resolve the debt. The IRS said it can help taxpayers resolve the debt.

For example, they can help taxpayers set up a payment plan or make them aware of other payment options. Taxpayers should not delay because some resolutions take longer than others.

“It’s especially important for taxpayers with imminent travel plans who have had their passport applications denied by (the State Department) to call the IRS promptly,” the IRS said in a statement.

For additional details, go to irs.gov on the web.