When Congress passed the Fixing America’s Surface Transportation Act (“FAST Act”) of 2015, it included Internal Revenue Code § 7345, a provision that gives the IRS authority to revoke passports and deny passport applications for individuals with “seriously delinquent tax debts.” The IRS implemented this new provision in 2018.
The law applies to those taxpayers who owe $50,000 or more (adjusted annually for inflation), including interest and penalties, if either:
- The IRS filed a Notice of Federal Tax Lien, or
- The IRS issued a levy.
If either of the above actions has occurred, the IRS issues a Notice CP508C, informing the taxpayer that it has notified the State Department of the delinquent tax debt. Once the State Department receives the certification, it cannot approve an application for a new or renewed passport and can revoke an already issued active passport. Passport revocation can only be reversed by paying the debt in full or making an alternative payment arrangement with the IRS. Once either option is done, the IRS will reverse the certification within 30 days.
If you have received a Notice CP508C or are at risk of receiving one in the future, contact Goldin Peiser & Peiser as soon as possible to avoid restrictions on your ability to travel outside of the country.
For more information about IRS Passport Revocation or our IRS Services, please fill out the form below, or call 214-635-2498.