Facing an Internal Revenue Service (IRS) debt is often daunting and stressful, with many people fearing the consequences of non-payment without knowing what potential punishments are incoming. While the repercussions often involve fines or wage garnishment, a less frequent but still significant impact is on passport status. The IRS, being a part of the federal government, has the ability to work with the State Department to revoke or reject the renewal of passport documents for certain debtors.
This becomes a critical concern for immigrants who depend on their passports for travel between their home country and the United States (and anyone who frequently travels in and out of the country). It’s essential to understand the circumstances under which your passport could be at risk due to IRS debt and the steps you can take to safeguard your travel freedom.
When Can the IRS Revoke My Passport?
Passport revocation over IRS debt kicks in when the debt is tagged as “seriously delinquent.” This applies to debts exceeding $62,000 (as of December 2023) that have not been addressed through a payment arrangement. The process begins with the issuance of Letter CP508C, Notice of Certification of Seriously Delinquent Federal Tax Debt to the State Department following a Final Notice of Intent to Levy or a Federal tax lien filing. Understanding this threshold is crucial for anyone at risk of reaching this level of debt with the IRS.
Letter CP508C states that the IRS has contacted the State Department to alert them about your tax debt, and has asked them to reject a passport renewal or deny a new passport application. If the matter is not dealt with, the IRS can later notify the State Department to revoke a current passport. Prior to actually revoking a passport the IRS will send Letter 6152, Notice of Intent to Request U.S. Department of State Revoke Your Passport. If you are overseas, the passport will not be revoked until you return to the United States.
Take Immediate Action
Upon receiving this notice from the IRS, it is vital to promptly seek a tax attorney’s help to protect your freedom to travel. Quick action is key to maintaining your international mobility and resolving your tax situation. A tax attorney can navigate the following strategies to manage your IRS debt:
- Proposing an offer in compromise
- Agreeing to an installment plan
- First-time penalty abatement
- Having the debt classified as currently not collectible
- Filing for bankruptcy related to your IRS debts
- Appealing the claimed debt amount to reduce it below the $62,000 mark
These measures can halt or eliminate any threat to your passport, ensuring your freedom to travel and securing a healthier financial future for yourself and your loved ones.
Protect Your Passport from the IRS with Robert V. Boeshaar, Attorney at Law
At Robert V. Boeshaar, Attorney at Law, we are ready to assist you with all of your tax challenges as a business or individual in Washington state. You deserve the freedom to travel without the looming threat of IRS debt affecting your passport status. Contact our law firm for support in getting out of trouble with the IRS. Let us help you maintain your right to travel and address your tax obligations effectively.
Robert V. Boeshaar Attorney at Law, LL.M.,PLLC
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