The U.S.A. national is presently owed $380 billion – affirmative, billion – in unpaid taxes from people and businesses, and they've currently got a brand new thanks to try and collect a number of that debt. a brand new law can permit the U.S.A. State Department to refuse to issue U.S.A. passports to people with "seriously delinquent" tax bills in excess of $50,000. what is additional, the State Department is allowed to revoke previously issued passports if the bearer is on the IRS list of debtors!
This new rule was one amongst many updates to U.S.A. tax code that was slipped into the
FAST Act ("Fixing America's Surface Transportation"), a bill authorizing funding to improve transportation infrastructure. it had been simply signed into law on Dec four, 2015, however the thought of denying passports to U.S.A. voters with Federal tax debt isn't new. In 2011, the final
Accounting workplace discharged a report analyzing all of the passports issued in 2008. Of the sixteen million passports issued that year as new passports or renewals, a hundred and twenty fifth were issued to U.S.A. voters UN agency owed the govt. $50,000 or additional in unpaid taxes and penalties. put together, these 224,000
travelers portrayed $5.8 billion in tax debt!
Unpaid taxes don't seem to be the sole debt which will end in a passport application being denied. for several years, the State Department has refused to issue passports to non-custodial folks UN agency owe $2,500 or additional in unpaid support payment. every U.S.A. state provides the State Department with a listing of people UN agency area unit behindhand with their support payment, and therefore the State Department won't issue a passport to anyone on these lists till they receive proof that the kid support payments area unit up to date. However, they do not cancel valid passports attributable to support payment debt.
So what will this new law mean for passport applicants? only a few passport applicants have serious tax debt, however those who do can would like either pay off their debts to the national or enter into a payment agreement like a suggestion in Compromise (OIC). for many travelers, the sole implication of the new law is that it's currently necessary to incorporate a social insurance range on all passport applications. Previously, the State Department may still issue a passport although the social insurance range wasn't enclosed, however currently it's grounds for associate degree automatic denial of the appliance. it is also yet one more sensible reason to create positive you pay your taxes on time! Since passports area unit required for all international flights, and may presently be required for a few travelers to board domestic flights, if you do not pay your taxes, you will virtually be grounded!
