Passport Certification and Hardship CNC Status

Some people first learn about passport certification when they apply to renew a passport. That is a bad way to find out. For taxpayers who genuinely cannot pay, there is a better way out than most realize: a hardship CNC determination.

The statute

IRC 7345(a) provides that if the Treasury receives certification from the Commissioner "that an individual has a seriously delinquent tax debt," it transmits the certification to the State Department "for action with respect to denial, revocation, or limitation of a passport."

IRC 7345(b)(1) defines a seriously delinquent tax debt as an unpaid, legally enforceable federal tax liability of an individual that has been assessed, is greater than $50,000, and either has a filed notice of lien for which the CDP rights under IRC 6320 "have been exhausted or have lapsed," or for which a levy has been made under IRC 6331. Under IRC 7345(f), the $50,000 amount is adjusted annually for inflation. For calendar year 2026, Rev. Proc. 2025-32, section 4.60, sets the amount at $66,000.

The statutory exceptions

IRC 7345(b)(2) excludes:

• A debt "being paid in a timely manner pursuant to an agreement" under section 6159 (installment agreements) or section 7122 (offers in compromise).
• A debt for which collection is suspended because a due process hearing under section 6330 is requested or pending.
• A debt for which collection is suspended because innocent spouse relief under section 6015(b) or (c) is elected, or relief under 6015(f) is requested.

CNC is not in that statutory list. That is where IRS policy comes in.

The IRS's hardship exclusion

IRM 5.16.1.2.9 says: "Section 7345 does not prohibit the IRS from exercising discretion to exclude certain debts from certification. The IRS has exercised discretion to exclude debts that are currently not collectible (CNC) due to hardship."

And for taxpayers already certified: "The IRS will reverse the certification of seriously delinquent tax debt and notify the State Department within 30 days if a certified taxpayer is later determined to be currently not collectible due to hardship. In some situations, employees may need to request expedited decertification."

Note the specific language: currently not collectible due to hardship. Other CNC categories, such as unable to locate or unable to contact, are not described as excluded.

Reversal under the statute

IRC 7345(c) requires the IRS to notify Treasury, and Treasury to notify State, when a 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)." It sets timing rules: for an installment agreement or accepted offer, notification "not later than 30 days after such agreement is entered into or such offer is accepted," and for innocent spouse requests, not later than 30 days after the election or request.

Combined with the IRM's 30-day commitment for hardship CNC, a taxpayer who qualifies for hardship status has a clear path to decertification.

Expedited decertification

The IRM mentions expedited decertification but does not detail it in the CNC chapter, pointing to IRM 5.19.25.2, Passport Certification Overview. The campus CNC procedures also tell managers to document approval "when an expedite passport decertification is being submitted." In practice, expedited handling matters when there is imminent travel or a pending passport application. If that is your situation, say so up front and have the travel documentation ready.

Financial statements in certified cases

The campus authority tables in IRM 5.19.13.2 note that for non-streamlined installment agreements, "A financial statement is required when the IA request is made in conjunction with a request for levy release or the taxpayer's account is identified as having a seriously delinquent tax debt." If you have been certified and want to resolve it through an installment agreement, expect to complete a financial statement. If you are seeking hardship CNC, you would be completing one anyway.

Notice and court review

IRC 7345(d) requires the IRS to "contemporaneously notify an individual of any certification" or reversal. IRC 7345(e) lets a taxpayer bring a civil action in a United States district court or the Tax Court "to determine whether the certification was erroneous or whether the Commissioner has failed to reverse the certification." If you qualify for hardship CNC, or have an agreement in place, and the IRS has not reversed the certification, court review is available.

Which path fits

If you have a seriously delinquent tax debt and need your passport, compare the routes:

For a hardship taxpayer, CNC is often the most realistic of these. An installment agreement you cannot afford will default, and a defaulted agreement is no longer a debt "being paid in a timely manner."

How the pieces of the definition interact with CNC

It helps to walk through the definition with a CNC account in mind. A hardship CNC account with a balance above the threshold will usually have a filed Notice of Federal Tax Lien, because the IRM generally calls for a lien filing on CNC accounts of $10,000 or more. Once the CDP rights for that lien filing under IRC 6320 have been exhausted or have lapsed, the second part of the definition can be met. So a hardship taxpayer with a large enough balance can fall within the statutory definition even though no one is actively collecting.

That is exactly why the IRS's discretionary exclusion matters. Without it, a taxpayer could be in hardship CNC, with collection suspended, and still lose a passport. The IRM closes that gap for hardship cases.

Balances below the threshold

If your assessed balance is at or below the inflation-adjusted threshold, $66,000 for 2026 under Rev. Proc. 2025-32, the statute does not apply to you. Interest and penalties add to the balance over time, so a balance near the line can cross it. If you are close, keep an eye on it, especially if you travel internationally for work or family.

A hardship case built for decertification

When passport certification is part of the problem, I build the hardship request with two goals in mind: the CNC determination itself, and a clean record that it was made due to hardship. That means a complete financial statement, documentation of income and allowable expenses, and an explanation of why any equity cannot be reached without causing hardship. A CNC closure for some other reason, such as inability to contact, does not carry the same protection under the IRM language.

Practical steps

• If you received a certification notice, do not ignore it. Read it for the description of your right to challenge it.
• Gather a full financial statement with documentation. Hardship status rests on proof.
• Tell the IRS about any imminent travel and ask about expedited decertification if hardship CNC is approved.
• Keep your CNC closing letter. It is your evidence that the hardship determination was made.

The passport statute is a powerful collection tool. For taxpayers who truly cannot pay, the IRS has chosen not to use it. Make sure the IRS knows you are one of them.