When the IRS labels a tax debt as “seriously delinquent,” it means the problem has escalated beyond unpaid bills—it now carries real legal consequences. Under IRS guidelines, seriously delinquent tax debt refers to unpaid, legally enforceable federal tax debt totaling more than $62,000 (adjusted annually for inflation), for which:
- A Notice of Federal Tax Lien has been filed, and
- All administrative remedies (like appeals or payment plans) have either lapsed or been denied.
This designation doesn’t just mean more penalties—it can directly impact your life. One of the most serious consequences is the revocation or denial of a U.S. passport. The IRS will notify the State Department, who may refuse to issue or renew your passport, or even revoke it entirely. This can especially impact frequent travelers, dual citizens, and expats.
Exceptions to the Rule:
Not all tax debt qualifies as seriously delinquent, even if it’s over $62,000. You won’t be flagged if:
- You’re in an approved Installment Agreement.
- You’ve filed an Offer in Compromise that’s under review.
- Your debt is under innocent spouse relief consideration.
- Collection is suspended due to hardship or bankruptcy.
If you’ve received a notice about seriously delinquent tax debt, act fast. You may still have time to get into compliance and stop enforcement actions. Consult a tax debt attorney or professional right away, they can help you avoid losing your passport and potentially reduce or resolve the debt.
