Your US Passport renewal denied because of IRS tax debt? If you owe the Internal Revenue Service (IRS) more than the certain amount as determined annually, the IRS has to by law send a certification to the US Department of State. The US Department of State can then deny your US passport renewal until you either pay the IRS debt in full or make arrangements for payment with the IRS.
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Why was US Passport Renewal Denied?
If the U.S. Department of State denied your passport renewal because of IRS debt, it generally means the IRS has certified you as having seriously delinquent federal tax debt under federal law. After receiving that certification, the State Department can deny a new passport or renewal and, in some cases, revoke an existing passport. They will send you a letter informing you the US passport renewal denied and information on next steps.
Here are the typical next steps:
- Contact the IRS to confirm why your debt was certified and whether the certification is correct.
- Resolve the issue by either:
- Paying the debt in full, or
- Entering into a qualifying payment arrangement with the IRS (such as an approved installment agreement or another accepted resolution), if eligible.
- Once the IRS reverses the certification, it notifies the State Department. The IRS states it generally sends the reversal within 30 days after the certification is resolved.
If you already applied for a passport, the State Department generally holds the application for 90 days after notifying you, giving you time to resolve the IRS certification. If the issue is not resolved within that period, the application is denied and closed, and you would need to submit a new application later.
If you have international travel within the next 45 days, the IRS advises contacting them promptly because they have procedures to expedite the reversal process once the qualifying issue has been resolved.
What is IRS Notice CP508C?
A Notice CP508C is an IRS notice informing you that the IRS has certified your tax debt as “seriously delinquent” to the U.S. Department of State. As a result, the State Department may deny your passport application or renewal, and in some cases may revoke or limit an existing passport.
Why you received CP508C
The IRS sends CP508C when it certifies that you have a seriously delinquent federal tax debt that meets the legal requirements for certification. The notice lists the tax periods and amounts involved and explains your rights and options.
How to resolve it
You generally have several ways to get the certification reversed:
- Pay the tax debt in full.
- Enter into an IRS-approved installment agreement and make timely payments.
- Have an Offer in Compromise accepted by the IRS.
- Resolve the debt if it was certified in error by contacting the IRS and providing supporting documentation.
- In certain situations, certification may also be reversed if the debt becomes legally unenforceable or if you qualify for exceptions such as bankruptcy, currently-not-collectible hardship status, or certain pending collection actions.
Once the issue is resolved, the IRS generally notifies the State Department within 30 days that the certification has been reversed.
If you disagree with the notice
If you believe:
- you don’t owe the amount,
- you’ve already paid it,
- or the certification was made in error,
call the IRS using the phone number shown on your CP508C notice. The IRS also allows taxpayers to seek review in the U.S. Tax Court or a U.S. District Court if they believe the certification is erroneous or the IRS failed to reverse it when required.
Need to file past due Income Tax Returns?
If you have past due income tax returns, you will likely need to file the returns so that you actual tax liability can be determined. Penalties and interest will be assessed which could be substantial. If you would like assistance please reach out.