Understanding IRS Notice CP508C: Certification of Seriously Delinquent Tax Debt

The Internal Revenue Service (IRS) issues Notice CP508C to individuals whose tax debts meet the definition of “seriously delinquent” under Internal Revenue Code Section 7345. This notice informs the taxpayer that the IRS has certified their tax debt to the U.S. Department of State, which may result in the denial, revocation, or limitation of their passport.

What Constitutes Seriously Delinquent Tax Debt?

According to the IRS, seriously delinquent tax debts are unpaid federal tax debts (including penalties and interest) that exceed $55,000 (adjusted annually for inflation). These debts include:

U.S. individual income taxes
Trust Fund Recovery Penalties
Business taxes for which taxpayers are personally liable
Other civil penalties

Additionally, the IRS must have filed a Notice of Federal Tax Lien, and all administrative remedies under the law must have lapsed, been exhausted, or a levy must have been issued in an attempt to collect the debt.

Consequences of Certification

The certification of a seriously delinquent tax debt to the State Department can have significant consequences for the taxpayer, including:

Denial of a passport application
Revocation of a current passport
Limitation of a passport to allow only return travel to the United States

Reversing the Certification

The IRS will reverse the certification when:

The tax debt is fully satisfied or becomes legally unenforceable.
The tax debt is no longer seriously delinquent.
The certification is erroneous.

Options for Taxpayers with Certified Debts

Taxpayers who have received Notice CP508C have several options to address their tax debt and potentially reverse the certification:

Enter into an IRS-approved installment agreement: This allows taxpayers to pay off their debt over time in monthly installments.
Submit an offer in compromise: This allows taxpayers to settle their debt for less than the full amount owed.
Seek innocent spouse relief: This may be an option for spouses who are not legally responsible for the tax debt.
Demonstrate financial hardship: Taxpayers who are experiencing financial hardship may qualify for a temporary suspension of collection activities.
File for bankruptcy: This will automatically suspend collection activities, including the certification to the State Department.

Contacting the IRS

Taxpayers who have questions about Notice CP508C or believe that their tax debt was certified in error should contact the IRS at the number listed on the notice. They can also contact the National Passport Information Center at 877-487-2778 for more information about the status of their passport.

What Does IRS Letter CP508c Mean?

FAQ

How do I know if the IRS blocked my passport?

Taxpayers will be notified in writing by the State Department if their application for a U.S. passport has been denied, or their current passport revoked. Taxpayers needing a U.S. passport to keep their jobs.

What is a delinquent debt certification from the IRS?

By law (Internal Revenue Code Section 7345), the IRS will certify taxpayers with seriously delinquent tax debts to the State Department for specific actions regarding their passports. Generally, the State Department will not issue passports to taxpayers after receiving their delinquent debt certification from the IRS.

What is considered delinquent federal tax debt?

Delinquent taxes refer to any unpaid taxes. Tax delinquency occurs as soon as you miss the deadline to file a tax return or pay the taxes due. Any type of tax can become delinquent.

Can you be denied a passport for owing back taxes?

If the Secretary of the Treasury informs us that you have seriously delinquent tax debt, we cannot issue a U.S. passport to you. In addition, we may revoke your current U.S. passport. Seriously delinquent tax debt is your unpaid, legally enforceable federal tax debt (includes interest and penalties).

What does cp508c mean?

CP508C is sent when the IRS has identified your tax debt as meeting the definition of “seriously delinquent” and provided that information to the State Department. This could affect your passport.

How do I get a cp508c?

www.IRS.GOV/PASSPORT. The IRS will send taxpayers a Notice CP508C by regular mail to their last known address at the time it certifies seriously delinquent tax debt to the State Department. The IRS will not send a copy of the CP508C notice to a taxpayer’s power of attorney.

How do I get a cp508c notice from the IRS?

After certifying your seriously delinquent tax debt to the State Department, the IRS will send you a CP508C Notice by regular mail using your last known address. The document is solely addressed to you, so your attorney will not be receiving a copy of it. After receiving the CP508C Notice, you can reverse the certification issued by the IRS.

What should I do if I disagree with my cp508c notice?

If you have any clarifications or disagree with the assessed tax specified in your CP508C, you should contact the IRS within 30 days from the date of the notice. If you’ve already paid the tax debt mentioned in the CP508C Notice, you should send proof of your payment to the IRS.