IRS CP508 Notice: How to Avoid Passport Revocation
- Howard Richardson
- 2 hours ago
- 4 min read
Receiving a notice from the Internal Revenue Service (IRS) is rarely a welcome event, but some notices carry more weight than others. Among the most serious is the CP508C, Notice of Certification of Your Seriously Delinquent Federal Tax Liability to the US State Department. This notice is not merely a request for payment; it is a direct threat to one of your most fundamental privileges as a citizen: the right to travel internationally. This discussion provides a comprehensive overview of the CP508C notice, the legal authority behind it and the steps you must take to resolve the underlying tax liability and protect your passport.
The Legal Hammer: Internal Revenue Code Section 7345
The authority for the IRS to certify a tax liability to the US State Department comes from Internal Revenue Code (IRC) § 7345, which was enacted as part of the Fixing America’s Surface Transportation (FAST) Act in 2015. This law mandates that the IRS notify the State Department of any taxpayer with a “seriously delinquent tax.” Once certified, the US State Department is generally required to deny the individual’s passport application and may revoke or limit an existing passport.
This powerful collection tool was designed to provide the IRS with significant leverage to compel payment from taxpayers with substantial outstanding liabilities. The constitutionality of this law has been challenged in court but has been consistently upheld, with courts affirming that the government's interest in collecting taxes outweighs the impact on an individual's right to international travel in this context.
What Constitutes a “Seriously Delinquent Tax”?
Understanding the precise definition of a “seriously delinquent tax” is crucial. According to IRC § 7345(b), it is an unpaid, legally enforceable federal tax liability of an individual that meets three specific criteria:
Criteria | Description |
Assessed Liability | The tax has been formally assessed by the IRS. |
Monetary Threshold | The total unpaid balance, including penalties and interest, exceeds a specific amount. This amount was initially $50,000 but is adjusted annually for inflation. For 2026, the threshold is $66,000. |
Collection Action Taken | A Notice of Federal Tax Lien has been filed and the taxpayer's rights to a Collection Due Process (CDP) hearing have been exhausted or lapsed, OR a levy has been issued. |
It is important to note that not all large tax liabilities qualify. The law provides several key exceptions.
Statutory Exceptions to Certification
A tax liability is NOT considered seriously delinquent if the taxpayer is:
In a Payment Plan: Making timely payments under an Installment Agreement or an Offer in Compromise (OIC).
In a CDP Hearing: Has a pending or timely requested Collection Due Process (CDP) hearing regarding a lien or levy.
Requesting Innocent Spouse Relief: Has made a request for innocent spouse relief under IRC § 6015.
The Certification Process: From IRS to State Department
The process is largely automated. The IRS systems identify taxpayers who meet the criteria for a seriously delinquent tax liability. Once identified, the following steps occur:
IRS Certification: The IRS certifies the liability to the U.S. Department of State.
CP508C Notice: The IRS sends the taxpayer the CP508C notice, informing them of the certification and its consequences .
State Department Action: Upon receiving the certification, the State Department will deny any pending passport application and may begin the process of revoking the taxpayer’s current passport.
If a taxpayer is abroad when their passport is revoked, the State Department may issue a limited-validity passport good only for a direct return to the United States.
Your Rights and How to Reverse the Certification
Receiving a CP508C notice requires immediate action. The key is to no longer have a “seriously delinquent tax” in the eyes of the IRS. This can be achieved in several ways:
Pay the liability in full.
Enter into an Installment Agreement and make the first payment.
Have an Offer in Compromise accepted by the IRS.
Request a Collection Due Process hearing in response to a lien or levy notice.
Successfully apply for Innocent Spouse Relief.
Once one of these conditions is met, the IRS is required to issue a reversal of the certification and notify the State Department. This is typically done within 30 days of the qualifying event. The IRS will send a CP508R notice to inform the taxpayer of the reversal.
It is critical to understand that even after the IRS reverses the certification, the State Department has its own processing time, and passport privileges are not restored instantaneously.
The Limits of Judicial Review
Taxpayers have the right to challenge a certification in US Tax Court or a US District Court. However, the scope of this review is very narrow. As established in cases like Pfirrman v. Commissioner and Adams v. Commissioner, the court can only determine if the certification was erroneous (i.e., the IRS failed to follow the law in IRC § 7345) or if the IRS has failed to reverse the certification in a timely manner. The court cannot review the underlying tax liability itself in these proceedings.
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Conclusion: A Serious Notice Demanding a Serious Response
The IRS CP508C notice is one of the most powerful tools in the IRS' collection arsenal. It represents a significant escalation in collection activity and poses a direct threat to your freedom of movement. If you receive this notice, you must act quickly and strategically. Understand the legal basis for the notice, verify that the IRS has met all statutory requirements, and immediately pursue a strategy to have the certification reversed.
Navigating the complexities of a seriously delinquent tax can be daunting. The rules are strict, the timelines are critical, and the stakes are high.
Take the Next Step: Book a Consultation
If you are facing a CP508C notice or other serious tax problems, you don't have to go it alone. We can help you understand your options and represent you before the IRS. Contact us today to schedule a consultation and take the first step toward resolving your tax liability and protecting your passport.
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