§7345 Revocation or Denial of Passport in Case of Certain Tax Delinquencies

Summary

The IRS must tell the State Department when someone has a "seriously delinquent tax debt" so the State can deny, revoke, or limit that person’s passport under the FAST Act. A "seriously delinquent tax debt" means an assessed, legally enforceable federal tax bill over $50,000 (that dollar amount is adjusted for inflation for years after 2016 and rounded to the nearest $1,000) and either a lien has been filed and appeal rights are used up or a levy has been made. It does not include debts being paid on an approved installment plan or offer-in-compromise, or debts where collection is paused because a taxpayer asked for a hearing or requested certain relief like innocent spouse rules. The IRS must tell the person at the same time it makes the certification and explain how to sue about it. If the IRS later finds the certification was wrong, the debt is paid, or an exception applies, the IRS must notify the State Department and the person within set time limits (for some situations, within 30 days; for full payment, by the date a lien release is issued; if wrong, as soon as possible). After that notice, the taxpayer can sue in a federal district court or the Tax Court; the court that takes the case first has sole control and may order the government to tell the State Department the certification was wrong. Only certain senior IRS officials may make or reverse these certifications.