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Passport denied

15 March 2016 / Andrey Krahmal
Issue: 4542 / Categories: Comment & Analysis , Income Tax

New law authorises the revocation or refusal of US passports to US tax delinquents.

In December 2015 President Obama approved the Fixing America’s Surface Transportation Act or FAST Act (HR 22) which provides long-term funding for surface transport in the US.

One important item in the legislation affects US taxpayers regardless of where they live. It inserts into the US Internal Revenue Code new section 7345 giving the US State Department the right to revoke or deny passports to applicants with ‘seriously delinquent tax debt’. The provision will have significant implications for US taxpayers who travel or live outside the United States and who owe federal taxes.

Seriously delinquent debt is defined as a tax liability greater than $50 000 that has been assessed and a notice of lien has been filed. It should be noted that the State Department not the Internal Revenue Service (IRS) has the power to revoke or deny any US taxpayer a passport.


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