If you’re a U.S. expat, your passport is a critical link to international travel and your livelihood. However, failure to manage your U.S. tax obligations can result in serious consequences—including passport revocation. The IRS and the State Department now have the authority to deny, revoke, or limit passports for taxpayers with seriously delinquent tax debt. Here’s what that means, how it works, and what steps you need to take to protect your travel privileges.
What Does Passport Revocation Mean?
Passport revocation means your current passport is canceled by the U.S. Department of State due to seriously delinquent tax debt. This revocation prevents you from traveling internationally and can even strand expats abroad. If you are overseas when your passport is revoked, you may only be issued a limited validity passport to return directly to the United States (direct return).
The process stems from a law passed under the Fixing America’s Surface Transportation (FAST) Act, empowering the IRS to certify seriously delinquent tax debt to the State Department, which can then deny passport applications, revoke passports, or limit them.
What Is Seriously Delinquent Tax Debt?
Seriously delinquent tax debt is defined as federal tax debt exceeding a threshold adjusted annually ($62,000 for 2025, including interest and penalties) that is:
- Legally enforceable
- Unpaid
- Not subject to a payment plan (such as an installment agreement or offer in compromise)
Once the IRS certifies your seriously delinquent tax debt, they will notify the State Department, and your passport application can be denied, or your current passport may be revoked.
How the Passport Revocation Process Works
- IRS Certification
The IRS identifies taxpayers with seriously delinquent tax debt and sends a notice—IRS CP508C—to the taxpayer’s last known address. This is the taxpayers letter notifying you of the certification. At the same time, the IRS will notify the State Department. - State Department Action
Once notified, the State Department may:- Deny an open passport application
- Deny a renewal request
- Revoke an existing passport
- Issue a limited validity passport only for direct return to the U.S.
- Resolution Options
You must resolve your tax debt to lift the certification. This does not always mean you must fully pay the debt. Alternatives include:- Entering an installment agreement
- Applying for an offer in compromise
- Qualifying for a payment agreement
- Showing the debt is legally unenforceable
- Reversal and Decertification
After resolution, the IRS will issue a reverse certification to the State Department. This process may be expedited in urgent travel or humanitarian situations (expedited decertification).
Who Is Exempt from Certification?
Certain taxpayers are excluded from certification even if they owe taxes. These include those who are:
- In a designated combat zone
- Living in a federally declared disaster area
- Victims of tax related identity theft
- Dealing with business taxes or trust fund recovery penalties
- Subject to other civil penalties not tied to federal tax debt
Also, if your tax debt is under appeal or subject to a payment plan, certification should not occur.
Preventing and Resolving Passport Revocation
To avoid passport issues, you need to act promptly if you receive an IRS CP508C notice. Here are steps you can take:
- Review the Notice
Ensure the tax debt is accurate. If the amount includes interest or civil penalties incorrectly, you may dispute it. - Contact the IRS
Use the phone numbers provided in the notice to discuss your tax issues. It may be possible to quickly resolve the matter with a payment agreement. - Pay the Tax Debt or Settle It
You can fully pay the debt or negotiate an offer in compromise or installment agreement. - Send Proof to the IRS
Once resolved, send proof of your agreement or payment. The IRS will then reverse certification and notify the department. - Request a Limited Validity Passport
If overseas, request a limited validity passport for direct return to the U.S.
IRS Passport Revocation Amount
The IRS passport revocation amount is the threshold of seriously delinquent tax debt. For 2025, it is $62,000 (this amount is adjusted annually), including penalties and interest. If your federal tax debt exceeds this amount and is legally enforceable, the IRS can certify it.
Consequences for Expats
As a U.S. expat, you rely on your passport to maintain residency abroad, travel for work, or return to the U.S. Passport denial or revocation can disrupt your ability to function legally in another country. It’s essential to stay ahead of your tax obligations, particularly delinquent tax debt that might escalate into seriously delinquent tax.
How 1040 Abroad Can Help
As a firm that specializes in helping U.S. expats with cross-border tax issues, 1040 Abroad assists with becoming tax compliant. If you’ve been personally liable for federal tax debt, it’s crucial to address the situation before the department acts to deny or revoke your passport.
