Starting in 2016, the IRS will have the authority to prevent taxpayers who have tax delinquencies from owning a passport. Not only is a passport required for international travel, but in the new year, people who live in certain states may also be required to have a passport to board domestic flights. The new regulation that states the IRS can revoke passports may pose an obstacle for individuals who wish to fly, but may also have a serious tax delinquency.
Under the Real ID Act, states came together to create a uniform standard for state ID cards. However, Minnesota, New York, New Hampshire, and Louisiana have not met the standard. Therefore, people who have IDs from these states will be required to present a passport or passport card to board any flight. Minnesota residents are advised to obtain a passport by January 2016. People who live in the remaining three states have been granted a waiver. New Hampshire has received a waiver that will be valid until June 1, 2016. Louisiana has been granted a waiver until October 10, 2016. Although the IRS can revoke passports, individuals who reside in states that have been granted a waiver have extra time to settle their tax delinquencies.
The idea to use passports to collect tax debt began to gain popularity in 2012 when the Government Accountability Office issued a report. Senators Reid and Hatch favored the idea and wrote a memo to Reporters and Editors. The idea continued to gain momentum until the new policy was enacted, granting the IRS the ability to limit passports for taxpayers who have more than $50,000 in seriously delinquent tax debt. It remains unclear exactly how the policy will be enforced. Seriously delinquent taxpayers may be blocked from obtaining a new passport or renewing an existing one. However, the IRS will likely have the authority to rescind current passports as well.
Taxpayers who have seriously delinquent tax debt and would like to learn more about how the IRS can revoke passports are encouraged to contact Gary Kaplan. Mr. Kaplan has more than 18 years of experience as a CPA and is available to assist individuals in Florida, Utah, Washington, D.C., Maryland, New York with virtually any tax and accounting situati
