If you plan to travel abroad, unpaid federal tax debt can cause a surprise. In some cases, the IRS can certify you as having a “seriously delinquent tax debt.” Next, the U.S. State Department can deny a new passport or renewal. In limited cases, it can also revoke an existing passport.
Congress created this rule in a 2015 law. Since then, the IRS has enforced it for several years.
Who is at risk?
For this rule, a seriously delinquent tax debt generally means $50,000 or more (indexed for inflation). In 2026, the threshold is $66,000 (up from $64,000 in 2025).
Importantly, the total includes tax, penalties, and interest. A lien filing or levy also matters. Specifically, the rule applies when the IRS has filed a federal tax lien or issued a levy.
When the IRS will not certify (or will reverse certification)
Certain situations prevent certification. In other cases, the IRS reverses a certification. For example, the IRS says it will not certify (or will reverse) if you:
- Are in bankruptcy
- Are a victim of tax-related identity theft (as identified by the IRS)
- Have an account the IRS marks as currently not collectible due to hardship
- Live in a federal disaster area
- Have a pending request for an installment agreement
- Have a pending offer in compromise
- Have an IRS-accepted adjustment that will fully satisfy the debt
How the process works
After certification, the IRS sends Notice CP508C. That notice explains what steps to take next. Because travel plans can move quickly, it’s best to act right away.
To move forward, you must resolve the debt or set up an approved arrangement. Once you resolve the issue, the IRS will reverse the certification within 30 days. In some cases, the IRS may speed up the reversal.
Separately, the State Department generally holds a passport application for 90 days before denying it. During that window, you can correct an incorrect certification, pay the debt, or enter a payment plan.
Ways to avoid passport problems
The IRS lists several ways to avoid State Department notification. You may avoid the issue if you:
- Pay the tax debt in full
- Pay under an approved installment agreement
- Pay under an accepted offer in compromise (OIC)
- Pay under the terms of a DOJ settlement agreement
- Request (or have pending) a collection due process appeal with a levy
- Have collection suspended because you requested innocent spouse relief
In addition, special rules may apply if you serve in a combat zone.
Two common resolution paths
1) Installment agreement (payment plan)
You can request a payment plan using Form 9465. Alternatively, you may be able to set up a monthly payment agreement online.
2) Offer in compromise (OIC)
An OIC may let you settle for less than the full amount owed. The IRS reviews your income and assets to decide what you can pay. Also, you can use an online pre-qualifier to check whether you may qualify.
Bottom line
Don’t wait if you owe back taxes and plan to travel. The sooner you act, the more options you usually have. A tax advisor can help you confirm your risk and choose the best path to resolve the debt before it affects your passport.
FAQ
What is CP508C?
The IRS sends CP508C when it certifies you as having a seriously delinquent tax debt. The notice explains how to resolve the issue. For example, it may point you to payment options or an approved agreement.
Can the IRS revoke an existing passport?
The IRS can certify your debt to the State Department. After that, the State Department can deny a new passport or renewal. In some cases, it can also revoke an existing passport.
How fast can certification be reversed?
After you resolve the tax issue, the IRS will reverse the certification within 30 days. In addition, the IRS may expedite the reversal in certain cases.