The IRS told the State Department about your tax debt. Here's how we reverse it.

CP508C is the IRS's Notice of Certification of Your Seriously Delinquent Federal Tax Debt to the State Department. The notice arrives by regular mail to your last known address. Per IRM 5.19.25, the IRS does not send a copy of CP508C to your power of attorney — the notice goes to the taxpayer directly. By the time CP508C arrives, the certification has already been transmitted to the U.S. Department of State.

The procedural framework is two-step. Step one: the IRS Commissioner determines that you have a "seriously delinquent tax debt" under IRC §7345(b)(1) and certifies that determination to the Secretary of the Treasury, who transmits it to the Secretary of State. Step two: the State Department, on receiving the certification, generally will not issue a new passport, will deny renewals, and may take action on a current passport including revocation or limitation under Section 22 U.S.C. §2714a.

What happens to your travel rights depends on your current passport status. If you have a valid passport: you can typically continue using it for the time being, but the State Department may revoke or limit it. If you apply for a new passport or renewal: the State Department will deny the application but will hold it open for 90 days from the date of its denial letter, giving you time to resolve the IRS debt and trigger decertification. If you are overseas: the State Department may issue a limited-validity passport valid only for direct return to the United States.

Per IRC §7345(b)(1), "seriously delinquent tax debt" requires all of the following:

1. The debt is assessed federal tax liability of an individual
2. The debt is legally enforceable (not barred by §6502 CSED expiration or other unenforceability)
3. The unpaid balance, including penalties and interest, exceeds the inflation-adjusted threshold — currently $66,000 for 2026 (threshold adjusts annually under §7345(f))
4. The IRS has either: (A) filed a Notice of Federal Tax Lien under IRC §6323 and the §6320 administrative appeal rights have lapsed or been exhausted, OR (B) issued a levy under IRC §6331
5. No §7345(b)(2) statutory exclusion or IRM 5.19.25.5 discretionary exclusion applies

If any one of these elements is missing, the certification is procedurally defective. Practitioners challenging certification frequently challenge: (a) whether the §6502 collection statute has expired; (b) whether §6320 administrative rights were actually exhausted; (c) whether the threshold was actually exceeded at the certification date; (d) whether a statutory exclusion applied but was not honored.

Statutory exclusions under IRC §7345(b)(2) — debts that are automatically excluded even when they meet the threshold: debts being paid timely under an installment agreement (§6159); debts being paid timely under an accepted OIC (§7122); debts where collection is suspended due to a timely CDP request (§6330); debts where collection is suspended due to innocent spouse relief request (§6015); debts subject to a DOJ settlement agreement. Additionally, per IRM 5.19.25.5, the IRS applies discretionary exclusions for accounts in CNC status, combat zone service, pending IRS adjustment that will satisfy the debt, and identity theft hardship.

Standard decertification can take up to 30 days from resolution — plus State Department processing time. For taxpayers with imminent international travel, this timeline is often too slow. IRS guidance provides for expedited decertification under the following conditions:

1. The taxpayer has proof of imminent international travel within the next 45 days
2. There is an open or pending passport application at the State Department
3. The underlying tax debt has been resolved through one of the §7345(c) decertification paths
4. The taxpayer or representative contacts the IRS Passport Program directly with documentation
5. Documentation includes: State Department denial letter, proof of travel (booked tickets, business meeting invitations, family emergency documentation), and confirmation of the underlying resolution

The expedited process can reduce the IRS notification timeline from 30 days to as little as a few business days. Critical limitation: expedited decertification requires an open passport application. If the existing passport has been revoked and no new application is pending, file the new application first — this triggers the State Department's 90-day hold — then submit the expedited decertification request.

If the IRS certification is erroneous — for example, the threshold was not actually met at certification, the §6320 administrative rights were not actually exhausted, a statutory exclusion applies, or the debt is not legally enforceable — the taxpayer may file a petition in United States Tax Court under IRC §7345(e) challenging the certification.

Critical recent precedent: In Garcia v. Commissioner, 164 T.C. No. 8 (May 19, 2025), the Tax Court held that passport revocation certifications under IRC §7345 are reviewed de novo — the court will accept new evidence as to the debt's enforceability and is not limited to the administrative record. This is a significant taxpayer-favorable holding. Subsequent decisions including Spencer v. Commissioner (January 2026, $1.6M TFRP certification upheld) and Shaban v. Commissioner, T.C. Memo. 2026-24 (brother's embezzlement claims did not void revocation) confirm the de novo framework while showing the substantive taxpayer burden remains significant. The §7345(e) petition is filed at the U.S. Tax Court in Washington, D.C., through DAWSON electronic filing.