Wednesday, January 24, 2018
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.