I.R.C. § 7345(a) In General —
If the Secretary receives certification by the Commissioner of Internal Revenue that
an individual has a seriously delinquent tax debt, the Secretary shall transmit such
certification to the Secretary of State for action with respect to denial, revocation,
or limitation of a passport pursuant to section 32101 of the FAST Act.
I.R.C. § 7345(b) Seriously Delinquent Tax Debt
I.R.C. § 7345(b)(1) In General —
For purposes of this section, the term “seriously delinquent tax debt” means an unpaid,
legally enforceable Federal tax liability of an individual—
I.R.C. § 7345(b)(1)(A) —
which has been assessed,
I.R.C. § 7345(b)(1)(B) —
which is greater than $50,000, and
I.R.C. § 7345(b)(1)(C) —
with respect to which—
I.R.C. § 7345(b)(1)(C)(i) —
a notice of lien has been filed pursuant to section 6323 and the administrative rights under section 6320 with respect to such filing have been exhausted or have lapsed, or
I.R.C. § 7345(b)(1)(C)(ii) —
a levy is made pursuant to section 6331.
I.R.C. § 7345(b)(2) Exceptions —
Such term shall not include—
I.R.C. § 7345(b)(2)(A) —
a debt that is being paid in a timely manner pursuant to an agreement to which the
individual is party under section 6159 or 7122, and
I.R.C. § 7345(b)(2)(B) —
a debt with respect to which collection is suspended with respect to the individual—
I.R.C. § 7345(b)(2)(B)(i) —
because a due process hearing under section 6330 is requested or pending, or
I.R.C. § 7345(b)(2)(B)(ii) —
because an election under subsection
(b) or (c) of section 6015 is made or relief under subsection (f) of such section is requested.
I.R.C. § 7345(c) Reversal Of Certification
I.R.C. § 7345(c)(1) In General —
In the case of an individual with respect to whom the Commissioner makes a certification
under subsection (a), the Commissioner shall notify the Secretary (and the Secretary
shall subsequently notify the Secretary of State) if such certification is found to
be erroneous or if the debt with respect to such certification is fully satisfied
or ceases to be a seriously delinquent tax debt by reason of subsection
(b)(2).
I.R.C. § 7345(c)(2) Timing Of Notice
I.R.C. § 7345(c)(2)(A) Full Satisfaction Of Debt —
In the case of a debt that has been fully satisfied or has become legally unenforceable,
such notification shall be made not later than the date required for issuing the certificate
of release of lien with respect to such debt under section 6325(a).
I.R.C. § 7345(c)(2)(B) Innocent Spouse Relief —
In the case of an individual who makes an election under subsection (b) or (c) of
section 6015, or requests relief under subsection (f) of such section, such notification shall
be made not later than 30 days after any such election or request.
I.R.C. § 7345(c)(2)(C) Installment Agreement Or Offer-In-Compromise —
In the case of an installment agreement under section 6159 or an offer-in-compromise under section 7122, such notification shall be made not later than 30 days after such agreement is entered
into or such offer is accepted by the Secretary.
I.R.C. § 7345(c)(2)(D) Erroneous Certification —
In the case of a certification found to be erroneous, such notification shall be made
as soon as practicable after such finding.
I.R.C. § 7345(d) Contemporaneous Notice To Individual —
The Commissioner shall contemporaneously notify an individual of any certification
under subsection (a), or any reversal of certification under subsection (c), with
respect to such individual. Such notice shall include a description in simple and
nontechnical terms of the right to bring a civil action under subsection (e).
I.R.C. § 7345(e) Judicial Review Of Certification
I.R.C. § 7345(e)(1) In General —
After the Commissioner notifies an individual under subsection
(d), the taxpayer may bring a civil action against the United States in a district
court of the United States, or against the Commissioner in the Tax Court, to determine
whether the certification was erroneous or whether the Commissioner has failed to
reverse the certification. For purposes of the preceding sentence, the court first
acquiring jurisdiction over such an action shall have sole jurisdiction.
I.R.C. § 7345(e)(2) Determination —
If the court determines that such certification was erroneous, then the court may
order the Secretary to notify the Secretary of State that such certification was erroneous.
I.R.C. § 7345(f) Adjustment For Inflation —
In the case of a calendar year beginning after 2016, the dollar amount in subsection
(b)(1)(B) shall be increased by an amount equal to—
I.R.C. § 7345(f)(1) —
such dollar amount, multiplied by
I.R.C. § 7345(f)(2) —
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting “calendar year 2015” for “calendar
year 2016” in subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $1,000,
such amount shall be rounded to the nearest multiple of $1,000.
I.R.C. § 7345(g) Delegation Of Certification —
A certification under subsection (a) or reversal of certification under subsection
(c) may only be delegated by the Commissioner of Internal Revenue to the Deputy Commissioner
for Services and Enforcement, or the Commissioner of an operating division, of the
Internal Revenue Service.
(Added by Pub. L. 114-94, Div. C, title XXXII, Sec. 32101(a), Dec. 4, 2015; amended by Pub. L. 115-97, title I, Sec. 11002(d)(1)(RR), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title I, Sec. 103, Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 — Subsec. (e)(1). Pub. L. 115-141, Div. U, Sec. 103(a)(1), amended par. (1) by substituting “, or against the Commissioner
in the Tax Court,” for “or the Tax Court” and by adding the sentence at the end.
Subsec. (f). Pub. L. 115-141, Div. U, Sec. 103(a)(2), amended subsec. (f) by substituting “subsection (b)(1)(B)”
for “subsection
(a)”.
2017 —
Subsec. (f)(2). Pub. L. 115-97, Sec. 11002(d)(1)(RR), amended par. (2) by substituting “for ‘calendar year 2016’ in subparagraph (A)(ii)”
for ‘‘for ‘calendar year 1992’ in subparagraph (B)’’.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 103, effective as if included in section 32101 of the Fixing America's
Surface Transportation Act [Pub. L. 114-94, effective Dec. 4, 2015].
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Pub. L. 115-97, Sec. 11002(d)(1)(RR), effective for taxable years beginning after December 31, 2017.
EFFECTIVE DATE
Effective on the date of enactment of this Act
[Enacted: Dec. 4, 2015].
AUTHORITY TO DENY OR REVOKE PASSPORT
Sec. 32101(e)-(g) of Pub. L. 114-94 provided the following:
“(e) AUTHORITY TO DENY OR REVOKE PASSPORT.—
“(1) DENIAL.—
“(A) IN GENERAL.—Except as provided under subparagraph (B), upon receiving a certification
described in section 7345 of the Internal Revenue Code of 1986 from the Secretary of the Treasury, the Secretary of State shall not issue
a passport to any individual who has a seriously delinquent tax debt described in
such section.
“(B) EMERGENCY AND HUMANITARIAN SITUATIONS.—Notwithstanding subparagraph (A), the
Secretary of State may issue a passport, in emergency circumstances or for humanitarian
reasons, to an individual described in such subparagraph.
“(2) REVOCATION.—
“(A) IN GENERAL.—The Secretary of State may revoke a passport previously issued to
any individual described in paragraph (1)(A).
“(B) LIMITATION FOR RETURN TO UNITED STATES.—If the Secretary of State decides to
revoke a passport under subparagraph
(A), the Secretary of State, before revocation, may—
“(i) limit a previously issued passport only for return travel to the United States;
or
“(ii) issue a limited passport that only permits return travel to the United States.
“(3) HOLD HARMLESS.—The Secretary of the Treasury, the Secretary of State, and any
of their designees shall not be liable to an individual for any action with respect
to a certification by the Commissioner of Internal Revenue under section 7345 of the Internal Revenue Code of 1986.
“(f) REVOCATION OR DENIAL OF PASSPORT IN CASE OF INDIVIDUAL WITHOUT SOCIAL SECURITY
ACCOUNT NUMBER.—
“(1) DENIAL.—
“(A) IN GENERAL.—Except as provided under subparagraph (B), upon receiving an application
for a passport from an individual that either—
“(i) does not include the social security account number issued to that individual,
or
“(ii) includes an incorrect or invalid social security number willfully, intentionally,
negligently, or recklessly provided by such individual, the Secretary of State is
authorized to deny such application and is authorized to not issue a passport to the
individual.
“(B) EMERGENCY AND HUMANITARIAN SITUATIONS.—Notwithstanding subparagraph (A), the
Secretary of State may issue a passport, in emergency circumstances or for humanitarian
reasons, to an individual described in subparagraph (A).
“(2) REVOCATION.—
“(A) IN GENERAL.—The Secretary of State may revoke a passport previously issued to
any individual described in paragraph (1)(A).
“(B) LIMITATION FOR RETURN TO UNITED STATES.—If the Secretary of State decides to
revoke a passport under subparagraph
(A), the Secretary of State, before revocation, may—
“(i) limit a previously issued passport only for return travel to the United States;
or
“(ii) issue a limited passport that only permits return travel to the United States.
“(g) REMOVAL OF CERTIFICATION FROM RECORD WHEN DEBT CEASES TO BE SERIOUSLY DELINQUENT.—If
pursuant to subsection (c) or (e) of section 7345 of the Internal Revenue Codeof 1986 the Secretary of State receives from the Secretary of the Treasury a notice
that an individual ceases to have a seriously delinquent tax debt, the Secretary of
State shall remove from the individual's record the certification with respect to
such debt.”
