New Tax Provision Creates Passport Problems

Did you know that the Internal Revenue Service (IRS) now has the legal authority to revoke passports to those who want to travel outside of the United States? According to the “Fixing America’s Surface Transportation Act” (passed in 2015), the IRS has the power to instructthe State Department to refuse and revoke passports to Americans owing back taxes amounting to over $51,000 (including interest and penalties). In 2018, the IRSannounced that it will be enforcing that law. According to the IRS, an estimated 362,000 Americans will either be denied passports or their passports will be revoked this year due to delinquent taxes. For those already traveling outside the United States, the State Department will issue “a limited passport good for a direct return to the United States.” Here’s how it works: once the IRS has determined that a taxpayer has fallen behind on money owed the government, it will inform [...]