§7345 — Title 26 Internal Revenue Code | U.S. Code

Summary

If the IRS certifies that a person has a "seriously delinquent tax debt," the Treasury must tell the State Department so the person’s passport can be denied, revoked, or limited under the FAST Act. "Seriously delinquent tax debt" means an assessed, legally enforceable federal tax bill over $50,000, and either a lien has been filed with appeals finished or lapsed, or a levy has been made. It does not include debts being paid under an installment plan or offer-in-compromise, or debts where collection is paused because of a pending hearing or certain relief/election requests. The IRS must tell the Treasury (and Treasury must tell State) if the certification was wrong, the debt is paid or unenforceable, or the debt stops being "seriously delinquent." The IRS must also notify the person at the same time and explain, in plain words, how to sue. If the person sues, they may go to federal district court (against the United States) or Tax Court (against the Commissioner); the first court to take the case has sole control. Notices must be sent by set deadlines (for example, within 30 days for certain elections or agreements, and by the date a lien release is issued when a debt is satisfied). The $50,000 threshold is adjusted for inflation after 2016. Only two high-level IRS officials may make or undo these certifications.

Title 26, §7345

Internal Revenue Code — Source: USLM XML via OLRC

(a)If the Secretary receives certification by the Commissioner of Internal Revenue that an individual has a seriously delinquent tax debt, the Secretary shall transmit such certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport pursuant to section 32101 of the FAST Act.

(b)(1)For purposes of this section, the term “seriously delinquent tax debt” means an unpaid, legally enforceable Federal tax liability of an individual—

(A)which has been assessed,

(B)which is greater than $50,000, and

(C)with respect to which—

(i)a notice of lien has been filed pursuant to section 6323 and the administrative rights under section 6320 with respect to such filing have been exhausted or have lapsed, or

(ii)a levy is made pursuant to section 6331.

(2)Such term shall not include—

(A)a debt that is being paid in a timely manner pursuant to an agreement to which the individual is party under section 6159 or 7122, and

(B)a debt with respect to which collection is suspended with respect to the individual—

(i)because a due process hearing under section 6330 is requested or pending, or

(ii)because an election under subsection (b) or (c) of section 6015 is made or relief under subsection (f) of such section is requested.

(c)(1)In the case of an individual with respect to whom the Commissioner makes a certification under subsection (a), the Commissioner shall notify the Secretary (and the Secretary shall subsequently notify the Secretary of State) if such certification is found to be erroneous or if the debt with respect to such certification is fully satisfied or ceases to be a seriously delinquent tax debt by reason of subsection (b)(2).

(2)(A)In the case of a debt that has been fully satisfied or has become legally unenforceable, such notification shall be made not later than the date required for issuing the certificate of release of lien with respect to such debt under section 6325(a).

(B)In the case of an individual who makes an election under subsection (b) or (c) of section 6015, or requests relief under subsection (f) of such section, such notification shall be made not later than 30 days after any such election or request.

(C)In the case of an installment agreement under section 6159 or an offer-in-compromise under section 7122, such notification shall be made not later than 30 days after such agreement is entered into or such offer is accepted by the Secretary.

(D)In the case of a certification found to be erroneous, such notification shall be made as soon as practicable after such finding.

(d)The Commissioner shall contemporaneously notify an individual of any certification under subsection (a), or any reversal of certification under subsection (c), with respect to such individual. Such notice shall include a description in simple and nontechnical terms of the right to bring a civil action under subsection (e).

(e)(1)After the Commissioner notifies an individual under subsection (d), the taxpayer may bring a civil action against the United States in a district court of the United States, or against the Commissioner in the Tax Court, to determine whether the certification was erroneous or whether the Commissioner has failed to reverse the certification. For purposes of the preceding sentence, the court first acquiring jurisdiction over such an action shall have sole jurisdiction.

(2)If the court determines that such certification was erroneous, then the court may order the Secretary to notify the Secretary of State that such certification was erroneous.

(f)In the case of a calendar year beginning after 2016, the dollar amount in subsection (b)(1)(B) shall be increased by an amount equal to—

(1)such dollar amount, multiplied by

(2)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting “calendar year 2015” for “calendar year 2016” in subparagraph (A)(ii) thereof.

(g)A certification under subsection (a) or reversal of certification under subsection (c) may only be delegated by the Commissioner of Internal Revenue to the Deputy Commissioner for Services and Enforcement, or the Commissioner of an operating division, of the Internal Revenue Service.

Notes & Related Subsidiaries

Inflation Adjusted Items for Certain YearsFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

References in Text

section 32101 of the FAST Act, referred to in subsec. (a), is section 32101 of Pub. L. 114–94, which enacted this section and section 2714a of Title 22, Foreign Relations and Intercourse, and amended section 6103, 6320, 6331, and 7508 of this title.

Amendments

2018—Subsec. (e)(1). Pub. L. 115–141, § 103(a)(1), substituted “, or against the Commissioner in the Tax Court,” for “or the Tax Court” and inserted at end “For purposes of the preceding sentence, the court first acquiring jurisdiction over such an action shall have sole jurisdiction.” Subsec. (f). Pub. L. 115–141, § 103(a)(2), substituted “subsection (b)(1)(B)” for “subsection (a)” in introductory provisions. 2017—Subsec. (f)(2). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 Amendment Pub. L. 115–141, div. U, title I, § 103(b), Mar. 23, 2018, 132 Stat. 1170, provided that: “The

Amendments

made by this section [amending this section] shall take effect as if included in section 32101 of the Fixing America’s Surface Transportation Act [Pub. L. 114–94].”

Effective Date

of 2017 AmendmentAmendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

§7345 Revocation or denial of passport in case of certain tax delinquencies

Summary

Title 26, §7345

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Citations & Metadata