New Guidance on Passports of Taxpayers with Delinquent Debt

IRC Sec. 7345 authorizes the IRS to certify “seriously delinquent tax debt” and notify the State Department of such certification. A seriously delinquent tax debt is generally an assessed tax debt that exceeds $50,000 (adjusted for inflation) and for which a notice of lien has been filed. The State Department generally will not issue or renew a passport to, and may revoke or limit a previously issued passport of, a delinquent taxpayer after receiving the certification from the IRS. Under new guidance issued in a Notice, the State Department generally will provide 90 days to a certified taxpayer who applies for a passport to resolve their tax delinquency by allowing them to: (1) resolve any erroneous certification issues, (2) make full payment of the tax debt, or (3) enter into a payment alternative with the IRS. If a taxpayer needs to travel within those 90 days, the taxpayer must contact the IRS and resolve the matter within 45 days from the date of passport application. Notice 2018-1, 2018-3 IRB 299.