Seriously delinquent tax debt (SDTD) is no minor issue and could result in revocation of a passport. An SDTD is a federal tax liability that has been assessed, exceeds $55,000 in 2022 (inflation adjusted), is unpaid, legally enforceable and is subject to a filed lien notice or levy. One taxpayer had SDTD totaling $90,201, incurred over several years ($28,912 was interest). She satisfied $17,346 of her 2003 tax bill, leaving a current balance of $72,855. She requested a collection due process hearing to challenge the underlying debt. The request was denied because the time limit to do so had expired. The U.S. Tax Court upheld the IRS’s position. (TC Memo 2022-54)
