The Passport Certification Program
Under IRC Section 7345, the IRS can certify your tax debt to the State Department as "seriously delinquent" if you owe more than a threshold amount (adjusted annually for inflation). Once certified, the State Department can revoke your existing passport or deny a new passport application.
CP508C: The Certification Notice
CP508C is the notice that your tax debt has been certified to the State Department. By the time you receive this letter, the certification has already occurred. The State Department will not process a passport application, and if you have an existing passport, it may be revoked.
How to Get Decertified
To reverse the certification, you need to bring your account below the threshold. This can be done by paying the balance in full, entering into an installment agreement, having an offer in compromise accepted, requesting currently not collectible status due to hardship, or having the tax liability adjusted so it falls below the threshold.
Once you resolve the issue, the IRS will reverse the certification. However, the process takes time. The IRS must notify the State Department, and the State Department must update its records. If you have imminent travel plans, this timeline can be a problem.
Who Is Affected
The program targets taxpayers with seriously delinquent tax debts, which is generally defined as an assessed tax liability exceeding the threshold where a notice of lien has been filed and all administrative remedies have lapsed, or a levy has been issued. Taxpayers on approved payment plans, those in pending CDP hearings, and those in active OIC processing are generally exempt from certification.
The Practical Impact
For taxpayers who travel internationally for work or personal reasons, passport certification can be devastating. Business owners who need to travel for meetings, retirees who live abroad part of the year, and families with international connections are all affected. The threat of passport revocation is often the motivating factor that finally pushes taxpayers to resolve long-standing tax debts.
Your tax debt can literally prevent you from leaving the country. CP508C is the letter that makes it real. If you owe a large balance to the IRS, resolve it before it grounds you.