A new section 7345 of the tax code is called “Revocation or Denial of Passport in Case of Certain Tax Delinquencies.” The idea goes back to 2012, when the Government Accountability Office reported on the potential for using the issuance of passports to collect taxes.

The law says the State Department can revoke, deny or limit passports for anyone the IRS certifies as having a seriously delinquent tax debt in an amount in excess of $50,000. Administrative details are scant. It could mean no new passport and no renewal. It could even mean the State Department will rescind existing passports.

The State Department will act when the IRS tells them, and the list of affected taxpayers will be compiled by the IRS. The IRS will use a threshold of $50,000 of unpaid federal taxes. But this $50,000 figure includes penalties and interest. And as everyone knows, interest and penalties can add up fast.

If you are contesting a proposed tax bill administratively with the IRS or in court, that should not count. That is not yet a tax debt. There is also an administrative exception, allowing the State Department to issue a passport in an emergency or for humanitarian reasons. But how that will work isn’t clear, nor is the amount of time it will take to get special dispensation. You would still be able to travel if your tax debt is being paid in a timely manner, as under a signed installment agreement. The rules are not limited to criminal tax cases or where the government thinks you are fleeing a tax debt.

In fact, you could have your passport revoked merely because you owe more than $50,000 and the IRS has filed a notice of lien. A $50,000 tax debt including interest and penalties is common, and the IRS files tax liens routinely. It’s the IRS way of putting creditors on notice.

You might also find a private debt collector acting for the IRS. The 5-year spending bill added increased authorization for private IRS collectors. For some tax debts, the law requires—rather than permits—private collectors. National Taxpayer Advocate Nina Olson wrote a letter urging Congress not to allow private collectors. But Congress wants more back tax money collected, and the President signed it into law.

sekker wrote:
it comes after the most corrupt in memory, which was after Clinton I.

I really do not understand your negativity here - we are talking about our president trying to do his job.

max wrote: ...giving us enhanced Patriot Act, enhanced NAGAA2014...

billb wrote:
7 pathetic vetoes in 7 years is indicative of collusion and corruption.

billb wrote: This corrupt admin will likely have the IRS target only conservatives though.

billb wrote:
7 pathetic vetoes in 7 years is indicative of collusion and corruption.


“Strong minds discuss ideas, average minds discuss events, weak minds discuss people.”

billb wrote:
[quote=billb]
7 pathetic vetoes in 7 years is indicative of collusion and corruption.


“Strong minds discuss ideas, average minds discuss events, weak minds discuss people.”