If you owe the IRS more than $50,000, you’d better renew your passport right now. A new bill that has passed both houses of Congress is likely to include a provision that will prevent “serious debtors” of the IRS from getting or renewing passports starting in January.
H.R.22 is in conference, Forbes reported yesterday, “so something could change. But it is expected to pass.”
If it does, new section 7345 of the tax code, “Revocation or Denial of Passport in Case of Certain Tax Delinquencies,” will allow the State Department to block Americans with “seriously delinquent” tax debts from obtaining or renewing a passport.
IRSMedic.com also noted that this “sure bill to be passed into law” which is “likely to hit the President’s desk before Thanksgiving” even allows the State Department to revoke existing passports.
Both articles note that the IRS will use a threshold of $50,000 of unpaid federal taxes, penalties, and interest—a number that can quickly add up.
The IRS and State department did not respond to calls from TMR by press time.
Pic: Sean Hobson