IRS Passport Revocation for Tax Debt: The $62,000 Threshold

Since 2018, the IRS can certify a taxpayer’s seriously delinquent tax debt to the State Department, which then denies passport applications, denies passport renewals, and in some cases revokes existing passports. The threshold for 2026 is $62,000 (adjusted annually for inflation). If you owe more than $62,000 in assessed federal tax, penalties, and interest, and the debt is not in one of the statutory exceptions, the IRS will certify the debt, and the State Department will act on it. For cross-border filers who need a US passport to travel internationally, this is not a theoretical risk.

What is seriously delinquent tax debt?

Under IRC 7345, seriously delinquent tax debt is an assessed federal tax liability (including penalties and interest) that exceeds $62,000 (the 2026 inflation-adjusted threshold) and for which:

• A notice of federal tax lien has been filed under IRC 6323 and all administrative remedies have been exhausted or lapsed, OR
• A levy has been issued under IRC 6331.

In practical terms, this means the IRS has moved past the notice stage and into active collection before the passport certification triggers. The IRS does not certify debts that are still in the notice-and-demand phase. A notice of federal tax lien must have been filed, or a levy must have been issued.

The $62,000 threshold is the total across all assessed years, not per year. If you owe $35,000 for 2022 and $30,000 for 2023, the combined $65,000 exceeds the threshold.

What are the exceptions?

The IRS will NOT certify your debt to the State Department if any of the following apply:

Installment agreement. If you are in an installment agreement and you are current on your payments, the debt is not certifiable. This is the most common and fastest exception to invoke.

Offer in Compromise. If an OIC is pending (the IRS has received and is processing the offer), the debt is not certifiable during the consideration period.

Collection Due Process hearing. If you have timely requested a CDP hearing and the hearing is pending, the debt is not certifiable.

Currently Not Collectible. If the IRS has placed your account in CNC status due to economic hardship, the debt is not certifiable.

Innocent spouse relief. If you have a pending claim for innocent spouse relief under IRC 6015, the portion of the debt attributable to the innocent spouse claim is excluded.

Combat zone. Service members in a combat zone or a contingency operation are exempt.

Bankruptcy. Debts included in an active bankruptcy case are not certifiable.

Identity theft. If the assessment is the result of identity theft and the IRS has acknowledged it, the debt is not certifiable.

The exceptions are mechanical: if you are in an installment agreement, the IRS’s system automatically excludes the debt from certification. You do not need to separately request the exception.

What does the State Department do?

When the IRS certifies the debt, the State Department can:

Deny a new passport application. If you apply for a new passport or a passport renewal, the application is denied. You receive a letter from the State Department explaining the denial and directing you to the IRS.

Revoke an existing passport. The State Department can revoke your current passport, though in practice it typically limits the passport to return travel to the United States rather than revoking it outright. This means you can use the passport to come back to the US, but not to travel to a third country.

Deny a passport card. The same restrictions apply to passport cards.

For cross-border filers living in Canada, the passport limitation is immediately practical. You need a valid US passport (or NEXUS card) to cross the Canada-US border by air, and the passport revocation would prevent international travel to any country other than back to the US. If your passport is limited to return travel only, you can re-enter the US but cannot travel from Canada to any other destination on the US passport.

How do I get decertified?

The IRS reverses the certification (decertifies the debt) when the basis for certification no longer exists. The decertification triggers are:

1. Enter into an installment agreement and make the first payment. The IRS decertifies within 30 days of establishing the agreement.
2. Pay the balance in full or reduce it below the $62,000 threshold.
3. Submit an OIC that the IRS accepts for processing (the IRS decertifies when it accepts the OIC for consideration, not when it approves the OIC).
4. Obtain CNC status due to economic hardship.
5. Successfully challenge the underlying assessment (the debt is reduced below the threshold through an audit reconsideration, appeal, or Tax Court decision).

After the IRS decertifies, it notifies the State Department. The State Department processes the reversal. Total time from resolution to passport availability is approximately 30 to 45 days, though it can take longer. If you have imminent travel, contact both the IRS and the State Department to request expedited processing.

What if I dispute the underlying debt?

If you believe the tax was incorrectly assessed, the certification does not eliminate your right to dispute it. You can:

• Request an audit reconsideration if the assessment was based on an examination you did not participate in.
• File a Tax Court petition if you received a notice of deficiency and are within the filing deadline.
• File a refund claim after paying the tax.
• Request a CDP hearing if the levy or lien that triggered the certification was issued within the CDP filing deadline.

While you dispute the debt, the passport certification remains in effect unless one of the exceptions applies. The practical strategy: enter into an installment agreement (which decertifies the debt) while simultaneously pursuing the substantive dispute. You can modify or terminate the installment agreement after the dispute is resolved.

You can also sue the IRS in federal district court to challenge an erroneous certification under IRC 7345(e). This is appropriate when the IRS certified a debt that falls within one of the statutory exceptions (you were in an installment agreement, the debt was in CNC status, etc.) and the IRS failed to exclude it. The court can order the IRS to decertify.

What about dual citizens?

If you are a dual US-Canadian citizen, the passport revocation affects only your US passport. Your Canadian passport is not affected by the IRS certification (the IRS has no mechanism to notify Canadian passport authorities). You can continue to travel internationally on your Canadian passport.

However, you cannot use a Canadian passport to enter or exit the United States as a US citizen. US law requires US citizens to use a US passport for travel to and from the US. If your US passport is limited to return travel only, you can use it to enter the US but may face questions at the border.

For US citizens who are not dual citizens, the passport revocation is more severe because there is no alternative travel document. The urgency of resolution is correspondingly higher.

What should I do next?

Check your balance with the IRS. If it exceeds $62,000 and you have received collection notices (lien or levy), certification may be imminent or already in effect. Enter into an installment agreement (the fastest decertification trigger) or make a partial payment to reduce the balance below $62,000. If your passport has already been denied or limited, contact the IRS immediately to establish a resolution and request expedited decertification.

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.