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How to Reverse an IRS Revocation or Denial of Passport: Everything You Need To Know Now

denial of passport

The Internal Revenue Service (IRS) works seriously regarding its responsibilities in ensuring that all U.S citizens comply with federal tax laws. As part of its authority to manage millions of tax accounts, it can also recommend to the State Department the revocation or denial of your passport if you have a seriously delinquent tax debt.

While this problem can be severe, it is reparable. The remedies include setting up suitable courses of action and using tax negotiation services to reverse your situation.

Why did the IRS issue a revocation on my passport?

Under the Fixing America’s Surface Transportation (FAST) Act, the IRS has the power to deny your passport renewal or application if you have seriously delinquent tax debts. If your passport is still valid, the state can also revoke or limit your ability to travel anywhere outside the United States. 

In such a case, tax delinquents don’t benefit from the IRS. Ergo, those who fail to file to settle their tax liabilities are penalized by having their travel rights restricted. 

Seriously delinquent tax accounts apply to people with over $55,000 in tax debts. This amount can include the total amount of taxes you owe, all incurred penalties, and interest gained over time. The IRS will send you the same information through a CP508C Notice to ensure you will settle your tax debt immediately. 

The State Department will hold your application for 90 days for you to resolve any possible errors or certification issues with the IRS. You can also use this period to make full payment on your tax debt or enter into payment arrangements with the IRS to avert the revocation or denial of your passport. 

How to reverse the declaration of revocation or denial of your passport

Once your tax status falls under serious delinquency, you should immediately find ways to settle your debt. Here are a few methods you can try to reverse the revocation of your passport. 

  • Satisfy the tax debt in full

The best way to clear your delinquency status and reverse the denial or revocation of your passport is to pay your tax debt in full as soon as possible. This step is crucial if you have imminent travel plans that can’t be canceled or moved.

  • Agree to an installment agreement with the IRS

If you can’t financially handle paying your tax debt in full, you can appeal to the IRS to put you on an installment agreement plan. Here, the goal is to help you manage your payments better within an allotted time frame. But remember that this doesn’t stop interest and other penalties from piling up. 

  • Make an offer in compromise

Another method to reverse the denial or revocation of your passport is to apply for an offer in compromise. An OIC to the IRS indicates you can’t pay your tax debt in full without creating financial hardship. As such, this option allows you to settle your tax dues for less than the original amount you owe.

  • Initiate a Collection Due Process hearing

Also known as CDP, this option can help you resolve your tax issues with the IRS. During the hearing, you can negotiate the status of your tax account and find the best way to settle your liabilities. This process can also temporarily stop the wage garnishment process until you’ve been given an opportunity for a hearing.

  • Request for innocent spouse relief

If your spouse or former spouse failed to file their reports on time, you could file for an innocent Spouse Relief request with the IRS that would prevent you from paying additional taxes coming from incorrect or improperly filed deductions or credits made by your spouse. 

  • File for bankruptcy

Declaring bankruptcy to the IRS can help you gain the opportunity to offer a compromise or gain a reasonable payment plan in your favor. But this can only apply to you if you meet the proper requirements declared by the IRS. 

  • Seek help from a tax resolution company

Reaching out to tax experts can help you find suitable approaches to handling your delinquency status more efficiently. Additionally, you avoid the risk of getting your passport revoked or denied. Professionals can also provide you with valuable insights on how you can stay compliant moving forward. They will also interact with the IRS, so you don’t have to.

Get Help with Passport Revocation or Denial

As a U.S citizen, you are responsible for paying your taxes on time. Otherwise, you risk facing consequences that may prompt the State Department to revoke your passport and limit your travel options.

Since not everyone is an expert in resolving these issues, relying on tax professionals can make a big difference. If your account now falls under serious delinquency status, reach out to our team. We have tax negotiation and mediation experts to help you minimize your tax liability.

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