When the IRS sends you a CP508C Notice, it means that your unsettled tax debt has been reported to the State Department as “seriously delinquent.” This is pursuant to the US Code Section 7345. The State Department has the right not to renew your passport or issue you a new one. They may also revoke your passport or place limitations on your current passport.
How the IRS defines a seriously delinquent tax debt
An unpaid tax debt totaling more than $51,000, including interest and penalties could be considered as seriously delinquent tax debt provided that the IRS has taken the following actions:
- A Notice of Federal Tax Lien has been filed and all administrative remedies under Internal Revenue Code Section 6320 have lapsed or been exhausted, or
- A levy has been issued
Take note that the $51,000 amount mentioned is adjusted yearly for inflation.
How to reverse the certification
The IRS will reverse the CP508C Notice when:
- Your tax debt has been settled or if it has expired
- The tax is not considered seriously delinquent
- The certification was sent by mistake. If you think the certification was made in error or if the amount they are charging you is incorrect, you may contact the number found in the notice sent to you.
- They will not reverse it if you simply pay enough to get your tax debt under the $51,000 threshold
Other tax options if you can’t afford to pay what the IRS is charging you
If you find it difficult to pay off your tax debt, you can consider the following options listed below.
- You can request for a Payment Plan with the IRS to pay off your debt through installment payments.
- Submit an Offer In Compromise to pay at a lower amount if the IRS accepts it.
- File for an Innocent Spouse Relief if you are qualified. This is applicable for items your spouse incorrectly reported or omitted in your tax return.
- Request Currently Not Collectible status if you qualify.
Our tax attorneys can help you determine the best option to proceed on.
How long will it take to get my U.S. passport after the certification is reversed?
If the certification is reversed within 30 days, the IRS will notify the State Department. You may call the National Passport Information Center at 877-487-2778 to inquire about the status of your passport.
Another way to resolve your passport issue when you receive a CP508C
If you file for your tax return for the current year and the refund that you will receive will cover your debt in full, then the IRS will reverse the certification.
Can I still travel if it’s an emergency situation
Generally speaking, if the IRS has put your passport on hold due to tax debt delinquency, then you won’t be able to travel. For business related travel, the IRS has stated that this still does not exempt you from travelling. However, they will consider “emergency and humanitarian” issues on a case to case basis.
What happens to US Citizens living overseas with revoked passports
In any case that you are living overseas and the State Department has revoked your passport, you can still travel back to the US. The State Department will either limit your passport to only for return travel to the US, or issue you with a limited passport.
Concluding our rundown on CP508C
If you have gotten a CP508C notice it is time to resolve your tax debt. You can either do it yourself or get help from our expert tax debt attorneys. Visit our Contact page.