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.
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:
Take note that the $51,000 amount mentioned is adjusted yearly for inflation.
The IRS will reverse the CP508C Notice when:
If you find it difficult to pay off your tax debt, you can consider the following options listed below.
Our tax attorneys can help you determine the best option to proceed on.
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.
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.
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 traveling. However, they will consider “emergency and humanitarian” issues on a case-to-case basis.
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.
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 or call us at (888) 515-4829.
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