IRS CP 508R- Reversal of Certification of Delinquent Tax Debt

IRS CP 508R- Reversal of Certification of Delinquent Tax Debt

IRS uses CP508R to notify you that the IRS has reversed the certification of the taxpayer’s tax debt as seriously delinquent with the State Department. The IRS previously notified the State Department that you were certified as owing seriously delinquent tax debt. This certification has been reversed, and the IRS has notified the State Department.

Why was the certification reversed?

Just because the certification was reversed does not necessarily mean you don’t have tax debt. The IRS will notify the State Department of the reversal of 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.

If I still have tax debt, why is it not considered seriously delinquent anymore?

A previously certified debt is no longer seriously delinquent when:

It is being paid in a timely manner under an installment agreement entered into with the IRS.
It is being paid in a timely manner under an offer in compromise accepted by the IRS or a settlement agreement entered into with the Justice Department.
A collection due process hearing is timely requested in connection with a levy to collect the debt.
Collection has been suspended because a request has been made for innocent spouse relief under Internal Revenue Code Section 6015.

How will this affect the status of my passport?

Although the State Department is no longer required to deny your application for a passport or passport renewal and cannot revoke your current passport because of your tax status, they may deny your passport application or revoke your passport for reasons unrelated to your tax debt.

What You Need to Do?

Keep this notice in your permanent records.
Continue to make timely payments and meet requirements for any applicable installment agreement, offer in compromise, Justice Department settlement agreement, innocent spouse relief, or collection due process hearing in connection with a levy.
Learn more about your payment options and how to make a payment arrangement.
Learn more about how the reversal of the certification of tax debt as seriously delinquent might affect the revocation or denial of your passport.

What are your options?

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What is my first step?

If you received a letter or notice, a decision has to be made. Do you feel confident to handle this situation on your own? If it is a simple issue and you already know the answer, call or write them. If the issue is more complicated, you need to hire a Certified Tax Resolution Specialist. The IRS or State will take full advantage of your lack of knowledge and experience.

What is Your Next Step?

The next step is to determine if the notice was sent in error. Do you have an outstanding tax liability? Do you have unfiled or incomplete returns?

Is There a Time Limit?

Yes, each letter or notice from the IRS or State will indicate a date that you MUST to contact them by. If you need more time, call the number on the notice or letter and request an extension. DO NOT ALLOW the time to expire without contacting them or hiring a representative to contact them for you.

What You Don’t Want to Do!

What you don’t want to do is nothing. Your tax problems will only get worse if you ignore them. If you cannot pay, there are a number of potential solutions available to those who are otherwise in compliance. In compliance means having all tax returns filed and any balances paid or on a payment plan. If you have outstanding debts or unfiled returns, you need to get hire a Certified Tax Resolution Specialist.

Get Some Help

If you don’t know how to address the issue(s), have unfiled return/unpaid balances or just done feel confident, let the experts at Legacy Tax & Resolution Services represent you. Work with our team of Certified Tax Resolution Specialists to resolve your issue(s) quickly. Best of all, you don’t have to talk to the IRS or State; we can speak on your behalf.