The U.S. government will soon be able to revoke passports from those who haven’t paid their taxes, and prevent those who are delinquent from obtaining a new one. Congress will implement this new law in December, targeting those who owe $50,000 or more in unpaid taxes. There are some exceptions, however, for Americans travelling for humanitarian purposes or those who are on an IRS payment plan or currently contesting a tax case in court.
While the Joint Committee on Taxation predicts that the new law would save the government about $398 million in the next ten years, not everyone is in favor. Besides Americans who currently owe substantial taxes who fear having their passports revoked or denied, many citizens living abroad have a harder time staying informed of their tax status, and fear the negative consequences this law could have on them.
Staying up-to-date and informed about your tax status with the IRS will become increasingly important with the implementation of this law.
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