The IRS recently issued a warning to taxpayers who are seriously delinquent on their tax debt – you may be unable to attain a new passport or renew your existing one.This applies to taxpayers with a “seriously delinquent tax debt” defined as exceeding $51,000, and for which a notice of lien has been filed.  Individuals who receive IRS Notice CP508C should take action to address their tax debt or they may find their travel plans interrupted due to an ability to get a new passport.  (The IRS also stated that Powers of Attorney will not receive a copy of Notice CP509C.)

Upon receiving certification of a seriously delinquent tax debt, the State Department may revoke your passport or limit it to return travel to the U.S.  They will also deny passport applications.

If the following conditions exist, the IRS also provided clarification that it would not certify a taxpayer as having a seriously delinquent tax debt:

1)            Taxpayer is in bankruptcy,

2)            A victim of tax-related identity theft,

3)            Has an account that is not collectible due to hardship,

4)            Is located in a federally declared disaster area, and/or

5)            Has a pending installment agreement or offer of compromise.

In situations where a certification is issued, and one or more of the above conditions exists, the IRS will reverse the certification and provide notification to the State Department.  Have questions about your taxes or how much you owe?  Let’s talk!  Contact one of our Zinner tax professionals today.

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