• Howard Richardson

How To Reinstate Passport Rights That Have Been Revoked For Delinquent Taxes

Updated: Apr 28

Various travel, airline and cruise companies saw their stock prices rise yesterday due to a rosier outlook on travel in the coming months. Vaccination efforts are fueling the bullish sentiment in the hope that by summer, travel and leisure activities, both domestic and international, will accelerate as the business climate improves.

The Internal Revenue Service (IRS) has been certifying Seriously Delinquent Tax Debt to the United States State Department. The State Department executes the passport restrictions imposed upon US citizens. US citizens with plans to travel internationally have seen their passports revoked or their passport applications denied. US citizens overseas can have their passport rights restricted to return flights to the United States.

The dollar figure for Seriously Delinquent Tax Debt is adjusted annually for inflation. It currently stands at $54,000. Anyone with a tax debt equal to or greater than this amount risks passport restrictions. In addition, one of the two must have occured:

  1. A notice of federal tax lien must have been filed and administrative opportunities to contest the tax debt must have ended

  2. A tax levy was executed

Some options for taxpayers interested in decertifying a Seriously Delinquent Tax Debt:

  1. Pay the tax in full

  2. Enter into an Installment Agreement (IA)

  3. Submit an Offer in Compromise (OIC)

  4. Enter into Currently Not Collectible (CNC) status for a temporary financial hardship

  5. File for a Collection Due Process (CDP) hearing if available to the taxpayer

  6. File for Innocent Spouse Relief

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