What Do You Need to Know?
According to 26 USC 7345, if your IRS tax debt totals more than $51,000, the IRS will certify to the State Department that your debt is “seriously delinquent.” If your debt is certified, you will be unable to get a new passport or renew your existing one. If your debt is not certified, none of the above will occur.
The $51,000 amount includes any interest and penalties that may have been added to your existing tax debt. Keep in mind that interest and penalties can quickly add up. So, it is important to be aware of all communications sent to you.
It is also important to note that the State Department will hold your application for 90 days before denying a passport. This allows time to provide you with sufficient notification. It also gives you time to make full payment of your tax debt, begin a payment plan with the IRS, or resolve any inaccurate certification issues.
However, there are situations where your passport will not be at risk. The following situations are listed by the IRS:
- You have filed for bankruptcy
- There is a pending offer in compromise with IRS
- You are a victim of tax-related identity theft
- The IRS has accepted an adjustment that will clear your debt entirely
- You qualify for a hardship
- You are in a federally declared disaster area
- If you have a pending IRS request for installment payments
If you are still unsure about your current situation and would like professional advice, schedule a consultation for more information.