Notice of Passport Action for Seriously Delinquent Debt: What You Need to Know

Understanding the IRS Notice of Passport Action for Seriously Delinquent Debt

The IRS may initiate a Notice of Passport Action for taxpayers with seriously delinquent tax debt. This can have serious implications for your travel rights, making it critical to address this notice promptly and effectively. This article provides a comprehensive overview to help you understand this action and take appropriate steps.

What is a Seriously Delinquent Tax Debt?

According to the Internal Revenue Code (IRC) Section 7345, a seriously delinquent tax debt is an unpaid, legally enforceable federal tax liability totaling more than $54,000, adjusted annually for inflation, including interest and penalties. These debts are based on the IRS's assessment and must include a filed lien or levy.

Why the IRS Issues a Notice of Passport Action

If you owe seriously delinquent tax debt, the IRS can certify this to the State Department. This can result in the denial, revocation, or limitation of your passport, affecting your travel freedoms significantly.

Potential Impacts on Your Passport

Once certified, the State Department generally will not issue a new passport and may revoke an existing passport. In cases where you are abroad, the State Department might issue a limited validity passport solely for returning to the United States.

Exemptions and Exclusions

Some tax debts are excluded from certification, including:

• Debts under an installment agreement
• Debts for which a timely collection due process hearing is requested
• Debts identified as currently not collectible
• Debts subject to an Offer in Compromise
• Debts in bankruptcy proceedings

Steps to Resolve Seriously Delinquent Debt

If you have received a Notice of Passport Action, consider the following steps:

• Contact the IRS: Reach out to discuss your specific situation. You can contact the IRS Collections department directly.
• Set Up a Payment Plan: Arranging an installment agreement can remove your certification for passport revocation.
• Settle via Offer in Compromise: If eligible, you can negotiate to pay less than the total owed amount.
• File for Innocent Spouse Relief: If applicable, this can relieve you of responsibility for paying tax, interest, and penalties.

How to Prevent Future Certification

To avoid future issues, ensure compliance with tax filings and payments. Consider regular reviews of your tax account and prompt response to any IRS notices.

Frequently Asked Questions

• What happens if I do not address the Notice of Passport Action?

  If unaddressed, you risk passport denial or revocation, impacting your ability to travel abroad.

• How long does it take to resolve the issue once actions are taken?

  The timeframe varies depending on the action taken. Resolution might take several weeks to months.

• Can I still apply for a new passport if I am making payments?

  If an installment agreement is in place and payments are being made, certification may be reversed, allowing passport application processing.

• Does this affect state-issued ID cards?

  No, this process affects only your U.S. passport.

• Where can I view my tax debt details?

  Visit the IRS website or contact the IRS directly to review your detailed tax account.

• Who can I contact for more help?

  Engage a tax professional or attorney specializing in tax law for personalized assistance.

Action Steps and Professional Help

Address your seriously delinquent tax debt promptly to avoid travel restrictions. Consider consulting a tax expert for personalized advice. For professional help, click here to visit our dashboard and connect with qualified professionals.