Did you know that not paying your taxes on time has serious ramifications, not only financially, but also personally? If you have a seriously delinquent tax debt, the Internal Revenue Service can certify that debt to the State Department in order for them to take action. In most cases, the State Department will not issue a passport to you after receiving certification from the IRS. If you already have your passport, the State Department can revoke it!
Certification of Individuals With Seriously Delinquent Tax Debt
A seriously delinquent tax debt is considered any federal tax debt that is greater than $51,000 for which a federal tax lien has lapsed or been exhausted, or where a levy has been issued. This threshold amount is indexed each year to account for inflation.
Some types of tax debt are excluded from this definition. According to the IRS they are:
- Being paid timely with an IRS-approved installment agreement
- Being paid timely with an offer in compromise accepted by the IRS, or a settlement agreement entered with the Justice Department
- For which a collection due process hearing is timely requested regarding a levy to collect the debt
- For which collection has been suspended because a request for innocent spouse relief under IRC § 6015 has been made
Also, according to the IRS, a passport is not at risk for any taxpayer:
- Who is in bankruptcy
- Who is identified by the IRS as a victim of tax-related identity theft
- Whose account the IRS has determined is currently not collectible due to hardship
- Who is located within a federally declared disaster area
- Who has a request pending with the IRS for an installment agreement
- Who has a pending offer in compromise with the IRS
- Who has an IRS accepted adjustment that will satisfy the debt in full
The State Department will hold a passport application for 90 days for anyone who owes their taxes, in order to give them an opportunity to resolve any erroneous certification issues, make a full payment of their tax debt, or enter into a payment plan agreement with the Internal Revenue Service.
Taxpayer Notification of Seriously Delinquent Tax Debt
The Internal Revenue Service is required to notify any taxpayer with seriously delinquent tax debt in writing. They also must notify you in writing when the IRS reverses its certification on your tax debt. These notices will arrive in the mail to your last known address.
Reversal of Certification
If you have received notice of certification to the State Department due to your tax debt, it is time to work with the professionals at Tax Crisis Institute. We can help you get the certification reversed! This reversal comes when:
- the tax debt is fully satisfied or no longer legally enforceable
- the tax debt is no longer seriously delinquent
- the certification is erroneous
In order to no longer be considered seriously delinquent, according to the IRSt:
- You and the IRS enter into a payment plan for you to pay the debt off over time
- The IRS accepts an offer in compromise to satisfy the debt
- The Justice Department enters into a settlement agreement to resolve the debt
- Collection is suspended because you request innocent spouse relief under IRC § 6015.
- You make a timely request for a collection due process hearing regarding a levy to collect the debt.
The logistics of handling a reversal of certification can be incredibly complicated. Tax Crisis Institute can take care of this for you! Our team of experts has decades upon decades of experience in the tax field, and would be honored to help you in your time of need.
Payment of Taxes
If you are unable to pay the amount of taxes you owe, it is necessary to make other arrangements to pay off your tax debt. Options for this include an installment agreement or offer in compromise. Tax Crisis Institute can help you navigate the waters of all of your options.
If you disagree with the tax amount or that the certification was made in error, Tax Crisis Institute can also help you combat it! Do not try to handle this complicated matter on your own. Let TCI help you! Contact us today, here.
Passport Status and Travel
If you have had your United States passport application denied, or even revoked, the State Department will notify you of this in writing at your last known address.
If your passport is necessary to keep your job, you must pay your seriously delinquent tax debt in full once it is certified. If you are unable to do so, you must arrange a payment plan with the Internal Revenue Service to have this certification reversed and maintain your passport status. Tax Crisis Institute can handle this process for you!
Once the tax problem is resolved with the Internal Revenue Service, the IRS will reverse the certification within 30 days of the resolution. They will also provide notification to the State Department as soon as possible.
If you have plans for international travel and need to resolve your passport issues immediately, call the phone number on the notice you received in the mail, or contact Tax Crisis Institute immediately to help you! Essentially, the only way to effectively get your passport reinstated is to pay your tax debt in full, or establish a payment plan with the Internal Revenue Service. They will then notify the State Department of your cooperation, and reverse your certification within 30 days of the date the tax debt is resolved.
Let Tax Crisis Institute Help You
Owing back taxes can be an incredibly overwhelming feeling, however, Tax Crisis Institute can help! If you have found yourself struggling to pay what you owe, and are even facing the threat of your passport being revoked, it is time to let Tax Crisis Institute help you! Contact us today, here.