Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP508C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS has identified your tax debt as meeting the definition of "seriously delinquent" in Internal Revenue Code Section 7345, and provided that information to the U.S. Department of State.
- What should you do if you receive this notice?
- Read your notice carefully. It explains the amount due, due date, what you need to know, and what you need to do to prevent the U.S. Department of State from denying, revoking, or limiting your passport.
- If you have any questions or disagree with the notice, contact the IRS within 30 days from the date of the notice at the toll-free number at the top right corner.
- Keep this notice in your permanent records.
FAQs & Additional Information
- Why am I getting this notice? The IRS has identified your tax debt as meeting the definition of "seriously delinquent" in Internal Revenue Code Section 7345, and provided that information to the U.S. Department of State.
- How does this affect me? (updated November 7, 2023)
- By law, the IRS will certify taxpayers with seriously delinquent tax debts to the State Department for specific actions regarding their passports.
- Generally, the State Department will not issue passports to taxpayers after receiving their delinquent debt certification from the IRS. The State Department may also deny a taxpayer's passport application or revoke their current passport.
- If taxpayers with certified tax debts are overseas, the State Department may issue a limited-validity passport allowing the taxpayer to return directly to the United States.
- What is seriously delinquent tax debt? (updated December 21, 2023)
- Seriously delinquent tax debts are legally enforceable, unpaid federal tax debt (including assessed penalties and interest) totaling more than $62,000 (adjusted yearly for inflation). These debts include U.S. individual income taxes, Trust Fund Recovery Penalties, business taxes for which taxpayers are personally liable for and other civil penalties.
- The IRS must have filed a Notice of Federal Tax Lien, and all administrative remedies under the law have lapsed, or have been exhausted or issued a levy in their efforts to collect these debts.
- What do I need to do to have this certification reversed? The IRS will reverse the certification when:
- The tax debt is fully satisfied or becomes legally unenforceable.
- The tax debt is no longer seriously delinquent.
- The certification is erroneous.
- If I can't pay the full amount I owe, what can I do to reverse the seriously delinquent certification so I can keep my U.S. passport? (updated December 21, 2023)
- A previously certified debt is no longer seriously delinquent when:
- Debts being timely paid through IRS-approved installment agreements.
- Debts being timely paid with an offer in compromise accepted by the IRS.
- Settlement agreements entered into with the Department of Justice.
- Those suspended because of a request for innocent spouse relief.
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- Additionally, a certified debt is no longer seriously delinquent for any taxpayer:
- Who is in bankruptcy
- Who is identified by the IRS as a victim of tax-related identity theft
- Whose account the IRS has determined to be "currently not collectible" due to hardship
- Is located within a federally declared disaster area
- Has a request pending with the IRS for an:
- installment agreement
- offer in compromise
- Who has an IRS-accepted adjustment that will fully satisfy their tax debt.
- If I believe the certification was made in error or don't agree with the tax debt amount, whom do I contact?
- If you believe the certification was made in error or disagree with the tax amount, you should call the number at the top right corner of your notice.
- If you've already paid the tax debt, please send proof of that payment to the address on your notice.
- How long will it take to get my U.S. passport after the certification is reversed? Once you've resolved your tax problem with the IRS, the IRS will reverse the certification within 30 days of the resolution and provide notification to the U.S. Department of State.
- If I recently filed my tax return for the current year and expect a refund to pay my liability in full, will this resolve my passport issue? Yes. The IRS will apply the refund to the debt. If the refund is sufficient to satisfy your seriously delinquent tax debt, they will reverse the certification.
- If I already have a U.S. passport, does this mean I can no longer use my passport to travel? (updated November 7, 2023) No. You can use your passport. Taxpayers will be notified in writing by the State Department if their application for a U.S. passport has been denied, or their current passport revoked.
- I'm a U.S. citizen living overseas and have plans to return to the U.S. Will I be able to return?Yes. Under Internal Revenue Code Section 2714(e)(2)(B), if the U.S. Department of State decides to revoke your passport, they may either limit your passport only for return travel to the U.S., or issue you a limited passport that only permits return travel.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.