School will soon be over, summer is here and your vacation planning may be underway. If you are planning a trip outside the United States and owe the IRS, you may be in for an unpleasant surprise. Under the law, the Secretary of State may deny, revoke or limit the validity of a taxpayer’s passport when he receives certification from the Commissioner of Internal Revenue that the taxpayer has a seriously delinquent tax debt.

When is a tax debt considered to be seriously delinquent?

Certain requirements need to be satisfied before the Commissioner may certify a debt as seriously delinquent. These are:

• The taxpayer must have an unpaid, legally enforceable tax debt.
• The debt must have been assessed against the taxpayer and must exceed a certain limit. This limit is adjusted yearly for inflation. In 2025, the debt owed must be greater than $65,000. The debt includes penalties and interest which have accrued on the tax debt.
• The IRS must have filed a notice of federal tax lien for the delinquent debt and the taxpayer must have exhausted all administrative rights to appeal the filing of the tax lien or said rights have lapsed. OR The IRS must have made a levy with respect to the delinquent debt.

The rules for determining whether a tax debt is seriously delinquent when multiple tax years are involved are complex and beyond the scope of this article. However, once a tax debt has been certified as delinquent, the IRS will not reverse the certification simply because the taxpayer pays a portion of the certified tax debt sufficient to fall below the $65,000 seriously delinquent limit.

To which tax debts does the law apply?

• Income tax.
• Trust fund recovery penalties.
• Business taxes for which individual taxpayer is personally liable.
• Civil penalties.

What if the tax debt arises from a jointly filed tax return?

If the debt owed to the IRS is for income tax and the return was filed jointly, then each spouse will be notified of the delinquency and both spouses are subject to having their passports revoked.

Are there any exceptions?

The Commissioner will not certify a debt as seriously delinquent if any of the following exceptions apply to the tax debt:

• The tax debt is being timely paid by the taxpayer through an IRS approved payment agreement or offer in compromise or is the subject of a pending payment agreement or offer in compromise.
• Collection of the tax debt is suspended due to a timely requested or pending collection due process hearing.
• The IRS has determined that the tax debt is currently not collectible due to hardship.
• Collection of the tax debt is suspended due to a pending request for innocent spouse relief.
• The tax debt is the subject of a settlement agreement with the Department of Justice.
• The tax debt arises from FBAR penalties.
• The taxpayer is in bankruptcy.
• The taxpayer has been identified by the IRS as the victim of tax related identity theft.
• The taxpayer is located within a federally declared disaster zone.
• The IRS has accepted an adjustment that will fully satisfy the tax debt owed.
• The IRS will delay certification if the taxpayer is serving in a designated combat zone or participating in a contingency operation.

What happens once the Secretary of State receives certification from the Commissioner?

If a taxpayer applies for issuance or renewal of a passport after the Secretary of State receives the certification of the taxpayer’s seriously delinquent tax debt, the Secretary will send the taxpayer a letter explaining that the application will be suspended for 90 days so as to enable the taxpayer to resolve the delinquent debt or certification of the debt with the IRS. If the taxpayer does not resolve the issue with the IRS within the 90 days, then the Secretary of State will deny the passport renewal or application and close the case.

What if the taxpayer has travel plans?

If the taxpayer has submitted a passport application or renewal application and has plans to travel internationally within 45 days, the taxpayer must contact the IRS to resolve the debt. The IRS will generally process the taxpayer’s case within 30 days if the taxpayer advises the IRS of his/her plans to travel within the next 45 days or that he/she lives abroad. The taxpayer must: (1) prove that a passport application or renewal application has been denied or a passport revoked by the Department of State within the last 90 days and (2) provide proof of travel plans within the next 45 days.

The taxpayer will still have to resolve the tax debt in order for the IRS to revoke the certification made to the Secretary of State. Without the revocation of the certification the Secretary of State will not issue or renew the passport.

What if the taxpayer is outside the country when the passport was revoked?

If the taxpayer is overseas when the passport is revoked, the Secretary of State may issue the taxpayer a limited validity passport allowing the taxpayer to return to the United States.

Can the IRS reverse the certification made to the Secretary of State?

The IRS will reverse the certification of the taxpayer’s seriously delinquent tax debt under the following circumstances:

• The taxpayer fully pays the seriously delinquent tax debt or the debt is no longer legally enforceable.
• The taxpayer enters into a payment agreement with the IRS for the seriously delinquent debt.
• The taxpayer enters into or has a pending offer in compromise for the seriously delinquent debt.
• The taxpayer submits a collection due process hearing request for the debt which is the subject of the certification.
• The taxpayer submits a request for innocent spouse relief for the debt which is the subject of the certification.
• The IRS’s certification to the Secretary of State is found to be erroneous. The appeal procedures for contesting the IRS’s certification are complex and beyond the scope of this article.

If the IRS and the taxpayer reach an agreement to resolve the seriously delinquent tax debt, but the taxpayer does not follow through on the agreed upon course of action, the IRS will ask the Secretary of State to revoke the taxpayer’s passport despite its previous request to reverse the certification.