The short answer is yes. If you have a seriously delinquent tax debt, meaning that you owe the IRS more than $54,000 (including penalties and interest) and have a federal tax lien or levy, the IRS may ask the US Department of State to revoke your passport and/or to deny your passport application.
Before requesting that the Department of State takes this action, the IRS will send you a notice asking that you contact them within 30 days to resolve your past due tax debt.
The IRS will not request for the Department of State to revoke or deny your passport
1. You have a past due tax debt that is being paid timely though an IRS approved payment plan
2. If the tax debt is being paid through an approved “Offer in Compromise”
3. If a request for “innocent spouse relief” has been made
4. Or if a collections due process hearing (basically a chance to appeal to an officer on why you can’t pay) is timely requested.
Also, if you owe a seriously delinquent tax debt and have filed for bankruptcy or the IRS has determined that you are currently not collectable due to financial hardship, the IRS will not request to revoke your passport and/or to deny your passport application.
If the IRS has already certified your tax debt to the US Department of State as a seriously delinquent tax debt and requested revocation or denial of your passport application, there are ways of getting this reversed. You can wait until the statute of limitations to collect the past due tax expires and the tax debt is no longer enforceable, however this could be a lengthy wait of up to 10 years.
The simplest and most direct way to get this done is by paying the full amount of tax owed. If you are unable to full pay the balance, hiring an experienced tax attorney form the Law Office of Casais and Prias can help you in obtaining an alternative payment arrangement to have your serious tax debt certification reversed.
Contact our office today to set up a free case evaluation.