Exceptions to Seriously Delinquent Tax Debt

There are numerous strategic exceptions to the classification of a tax debt as seriously delinquent. Some of these exceptions are contained in tax code, and some have been created by the IRS, which has broad discretion to allow additional exceptions. The most common exclusions from the definition of a “seriously delinquent tax debt” are:

  1. Tax debt for which there is a pending election for innocent spouse treatment under Tax Code Section 6015 pending before the IRS.
  2. Tax debt which is part of an accepted offer in compromise, and for which payments are being
    made in a timely manner.
  3. Tax debt which is being paid in a timely manner pursuant to an installment agreement
    accepted by the IRS.
  4. Tax debt for which a collection due process hearing for a levy has been timely requested. A
    timely request for an equivalent hearing will NOT prevent the tax debt from being seriously
  5. Tax debt that has been determined to be currently not collectible, i.e. CNC.
  6. Tax debt of a taxpayer in bankruptcy.
  7. Tax debt resulting from identify theft.
  8. Tax debt that is included in a pending offer in compromise, but caution: if you do not properly
    prepare your OIC, and it is treated as being submitted for the purposes of delay, it will NOT
    stop the revocation of your passport.
  9. Taxpayers in a disaster zone.
  10. Taxpayers is serving in a combat zone or participating in a contingency operation.
  11. The Taxpayer is deceased.
  12. Tax debt is a result of a criminal restitution assessment.

Our law firm has assisted numerous clients with IRS revoked passport problems fit within these exclusions to avoid passport revocation. Contact us for help.