On December 4, 2015 several tax provisions were signed into law with the Surface Transportation Reauthorization and Reform Act of 2015. A significant piece of this legislation now provides that the IRS is required to notify the State Department of taxpayers that are “seriously delinquent.”
New Internal Revenue Code 7345 now requires the Commissioner of the Internal Revenue Service to provide certification to the State Department regarding those individuals with unpaid taxes in excess of $50,000 and for which a lien or levy has been filed. The result of the notification will be the revocation, denial, or limitation of a passport for those individuals.
Under the new law, “seriously delinquent tax debt” does not include a debt that is being paid in a timely manner under an installment agreement or an offer in compromise, or a debt where collection actions by the IRS have been suspended due to a collection due process hearing or a pending request for innocent spouse relief.
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