Yes, they can - and the notice you received, the CP508C, means it is already in motion. Federal law requires the IRS to certify taxpayers with seriously delinquent tax debt to the State Department, which then denies new passports and renewals and can revoke existing ones. The threshold sits above $60,000 including penalties and interest, adjusted annually, and the debt must have reached the stage of a filed lien notice or a levy. If you travel for work or family, this notice is the one to treat as urgent.

What Reverses the Certification

The statute lists the exits, and each one works: paying the debt below the threshold, entering an installment agreement, getting an offer in compromise accepted, or having a timely collection due process hearing or innocent spouse request pending. IRS policy also excludes hardship cases - accounts in currently not collectible status due to economic hardship are not certified, and getting an account into that status supports decertification. Notice the pattern: the certification is not really about the passport. It is leverage to force the debt into a resolution posture, and any resolution posture turns the leverage off.

The Timing Mechanics

Once a qualifying resolution exists, the IRS notifies the State Department and decertification follows - though the gears turn in weeks, not days, which matters if travel is imminent. Expedited procedures exist for genuinely urgent situations, including taxpayers abroad needing documents to return, and the right escalation can compress the timeline. There is also judicial review if the certification itself was erroneous - wrong taxpayer, wrong balance, debt already in an agreement - and erroneous certifications happen.

Use the Leverage in Reverse

The same agreement that restores your passport also stops levies, opens lien options, and ends the escalation - so the response to a CP508C is simply accelerated resolution work, chosen strategically rather than in panic. If travel is on your calendar, tell me the date and we build backward from it. Call me this week.