Tax Debt and Travel: The IRS Can Cancel Your Passport

Most people think of IRS enforcement in terms of liens, levies, and wage garnishments — money problems. But under a little-known law, tax debt can literally stop your client from leaving the country.

It’s called the Fixing America’s Surface Transportation (FAST) Act, which has nothing to do with the IRS, but tucked inside it is a provision authorizing the IRS to certify seriously delinquent tax debt to the U.S. Department of State.

Once that happens, the State Department can revoke, limit, or deny a passport.

The threshold is about $64,000 in unpaid, legally enforceable federal tax debt — including penalties and interest — that’s been assessed, a lien filed, and collection rights exhausted.

For clients who travel for business, work abroad, or just need the peace of mind of having a valid passport, that’s not a scare tactic; it's a problem.

Why This Matters:

If you’re a CPA, a family-law attorney, or a financial advisor, you may already know which of your clients have lingering tax issues — but you might not realize how fast those issues can snowball into something far more serious.

The IRS began enforcing passport revocations in 2018, and they’ve continued to expand the program. The target group isn’t just high-dollar fraudsters; it’s everyday taxpayers who fell behind, ignored letters, and let things spiral.

A client with a $70,000 IRS balance who just accepted an overseas job? They might not be able to leave the country.

A retiree planning a once-in-a-lifetime trip who withdrew money from their IRA without withholding? Their passport renewal could get denied.

A self-employed consultant who spent a few years underpaying estimated taxes while growing their business? One IRS certification later, and their passport renewal gets denied right before a client trip to London.

This isn’t a collection letter you can throw in a drawer.

So let’s walk through the three things you need to know when a client’s tax debt crosses that $64,000 line — and how fast the situation can move from stressful to serious.

1. The $64,000 Trigger — When the IRS Gets the State Department Involved

“Seriously delinquent” sounds subjective, but it’s not. As of 2025, the IRS defines it as an unpaid, legally enforceable federal tax debt totaling $64,000 or more, for which:

• The IRS has filed a Notice of Federal Tax Lien and exhausted appeal rights, or

• The IRS has issued a levy, and

• No payment arrangement (like an installment agreement or Offer in Compromise) is in place.

Once those boxes are checked, the IRS certifies the debt to the U.S. Department of State, which is then required by law to deny a passport application — and may revoke an existing one.

This certification isn’t theoretical. Since 2018, the IRS has certified hundreds of thousands of taxpayers under this program. And while the $64,000 figure may sound high, you’d be surprised how many clients cross it quickly once penalties and interest stack up.

It doesn’t take years of neglect — just a few missed returns, an audit adjustment, and a year or two of unpaid balances can push a taxpayer right over that line.

2. The Warning Letters — CP508C and Letter 6152

Clients rarely find out about passport certification on their own. The IRS doesn’t call, text, or email. They mail a notice: Notice CP508C — the official letter notifying the taxpayer that their debt has been certified to the State Department.

It’s sent to the last known address, which often means it lands in an old mailbox or a stack of unopened mail on the kitchen counter.

That notice means the clock has already run out. The IRS has notified the State Department, and the State Department can now deny or revoke the passport at any time.

Before taking that final step, though, the IRS often sends Letter 6152 — “Notice of Intent to Request U.S. Department of State Revoke Your Passport.” It’s the final notice where the taxpayer can resolve the debt before they certify the delinquent tax debt with the State department.

3. The Escape Routes — How to Fix It Before It’s Too Late

Here’s the good news: “Seriously delinquent” doesn’t mean permanently doomed. The IRS isn’t looking to strand people — they just want taxpayers to engage.

A few ways to stop or reverse certification:

• Pay the balance in full. Simple, not easy. But full payment leads to reversal potentially within 30 days.

• Set up an Installment Agreement or Negotiate a Currently Not Collectible Status. Once the Installment Agreement is accepted, the taxpayer is no longer considered "seriously delinquent," and the IRS must notify the State Department to lift the restriction; however, this reversal will still take at least 30 days.

• Submit an Offer in Compromise. If accepted, or even if it’s under active consideration, certification can be reversed.

• Prove the certification was an error. If the debt wasn’t actually enforceable or was miscalculated, the IRS can withdraw certification.

Although the reversal is supposed to take 30 days, many times that timeline is extended. For clients abroad or with upcoming travel, the IRS allows expedited decertification if departure is within 45 days. But that process depends on a fast, organized response — and someone who knows how to navigate the system.

The IRS won't decertify based on good intentions. They need signed paperwork, verified numbers, and concrete arrangements. Inaction equals grounding.

TL;DR

⏩ Owing $64,000 or more in unpaid federal taxes (including penalties and interest) puts your passport at risk.

⏩ Once the IRS certifies your debt as “seriously delinquent,” the State Department can deny, revoke, or limit your passport.

⏩ The IRS notifies taxpayers through Notice CP508C and Letter 6152.

⏩ You can stop or reverse certification by paying in full, setting up an Installment Agreement, submitting an Offer in Compromise, negotiating a currently not collectible status or proving an error.

⏩ If you travel internationally or rely on your passport for business, resolving IRS debt isn’t just about money—it’s about mobility.