Introduction: Why This Matters
For most Americans, the passport is more than a travel document — it’s a lifeline. It allows businesspeople to manage global operations, families to maintain international ties, and professionals abroad to continue careers. The idea that the IRS can interfere with that freedom shocks many. But since 2015, Internal Revenue Code §7345 has given the IRS power to certify taxpayers with “seriously delinquent tax debt” to the Department of State, which can then revoke or deny passports.
Having represented thousands of taxpayers before the IRS, I can say this provision is not theoretical. I’ve seen executives blocked from renewing their passports before critical meetings, retirees stuck abroad with healthcare issues, and digital nomads forced to uproot their lives. Understanding how this works — and how to resolve it — is critical.
1. The Legislative Background: Why Congress Armed the IRS With This Tool
The Fixing America’s Surface Transportation (FAST) Act of 2015 was a highway funding bill. Buried deep inside was a revenue provision that few taxpayers noticed: Congress authorized the IRS to work with the State Department to restrict passports of individuals with large, unpaid tax debts.
The idea was simple: unpaid taxes represent billions in lost revenue, and the IRS needed leverage. Threatening liens and levies wasn’t always enough. But the ability to restrict international movement — especially for wealthy taxpayers with overseas holdings — provided a new enforcement tool.
This was not without controversy. Civil liberties advocates raised concerns about due process, especially since taxpayers could lose a passport before final court review of their tax liabilities. The IRS, for its part, stressed that the law targeted only a small subset of high-balance, non-compliant taxpayers.
The law is codified in IRC §7345, which authorizes the IRS to:
- Certify “seriously delinquent tax debt” to the Secretary of State.
- Notify the taxpayer in writing (CP508C).
- Reverse certification when the debt is resolved or excluded (CP508R).
The State Department then acts on the certification: denying passport applications, revoking valid passports, or issuing limited passports for return travel.
Congress’s intent was deterrence. By 2018, the IRS began systematically certifying taxpayers, and thousands have been affected annually since.
2. IRS Mechanics: How Certification Works in Practice
Certification isn’t arbitrary. It follows a structured process, and knowing the mechanics helps you anticipate or challenge it.
Step 1: Assessment & Billing
The IRS first assesses tax, penalties, and interest through audits, return processing, or substitute-for-return assessments. Once assessed, the IRS must send balance due notices.
Step 2: Collection Notices
After several ignored notices (CP14, CP501, CP503, CP504), the IRS may issue a Notice of Federal Tax Lien or begin levy procedures. At this point, if the balance meets the threshold, you are eligible for passport certification.
Step 3: Certification
The IRS identifies accounts exceeding the statutory threshold (currently $64,000 in 2025). They certify these taxpayers in bulk to the State Department. Certification is system-driven and occurs weekly.
Step 4: Notification
The IRS mails Notice CP508C to the taxpayer’s last known address. Importantly, your representative does not get a copy. Many practitioners only find out after their client brings them the letter.
Step 5: Transmission to State Department
The IRS transmits your name, TIN, and debt certification to the State Department, which updates your passport record.
Step 6: Resolution & Reversal
If you pay, set up an installment agreement, or qualify for an exclusion, the IRS issues CP508R. They notify the State Department within ~30 days. In expedited cases, this can be shortened.
3. The Notices: CP508C, CP508R, and Letter 6152
CP508C: The Certification Notice
- Confirms the IRS has certified your debt as “seriously delinquent.”
- Sent only to you, not your Power of Attorney.
- Lists your total balance, years involved, and IRS contact numbers.
- This is not a warning — certification has already occurred.
CP508R: The Reversal Notice
- Sent when the IRS reverses certification.
- Issued if you pay in full, enter an accepted installment agreement, obtain OIC acceptance, prove hardship, or qualify under another exclusion.
- This is the document you want — it clears your record with the State Department.
Letter 6152: Passport Revocation Recommendation
- A relatively new letter, sent when the IRS intends to recommend the State Department revoke your current passport.
- Provides 30 days to resolve the debt or enter into an alternative.
- Indicates a more serious stage: not just denial of applications, but loss of your existing travel document.
As a practitioner, I’ve seen clients ignore CP508C thinking it was “just another notice.” By the time Letter 6152 arrived, they were weeks away from losing their ability to travel. Timing matters.
4. Thresholds, Exclusions, and Definitions
The Threshold
- For 2025, the amount is $64,000.
- Adjusted annually for inflation (was $51,000 in 2017, $62,000 in 2024).
- Includes tax, penalties, and interest.
What Counts as “Seriously Delinquent”
- A legally enforceable federal tax debt.
- Assessed and unpaid.
- A lien filed, or a levy issued.
What Does Not Count
Certain situations protect you even if you owe above the threshold:
- Bankruptcy. Tax debts in an active bankruptcy case.
- Installment Agreements. Once accepted, your debt is excluded.
- Offer in Compromise. If accepted or pending, you’re protected.
- Collection Due Process Hearing. While a timely CDP hearing is pending.
- Currently Not Collectible. If IRS marks your account CNC due to hardship.
- Identity Theft Victims. Certified debts tied to ID theft.
- Disaster Relief. If you qualify under certain federal disaster provisions.
Debts That Don’t Qualify
- FBAR penalties.
- Child support obligations.
- Non-IRS federal debts.
The exclusions are critical. I’ve reversed certifications by proving hardship (CNC) or showing an Offer in Compromise was pending when IRS certified. These technical defenses can make the difference between keeping and losing your passport.
Practitioner Insight
One of my clients, an entrepreneur abroad, had balances over $500,000. He assumed he couldn’t travel for years until he paid. In fact, within six weeks, we negotiated a partial pay installment agreement that immediately removed him from certification. He kept his passport, continued his business, and eventually settled through an OIC.
The takeaway: certification is not the end. There are structured exits — but only if you act quickly and strategically.
Authoritative References (Part I)
- IRS – General Passport Revocation Guidance
- IRS – Notices
- IRS – Certification Procedures & Thresholds
- IRS – Exclusions and Protections
