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Pay or Stay. IRS Set to Revoke Passports for Non-Taxpayers.

passport-315266_640If you’ve been thinking about planning a European vacation in 2016 or any travel outside of the U.S. or if you’re an American living abroad and owe the IRS taxes, you just might have to stay put. It looks like Congress is getting ready to put the kibosh on your plans.

According to a recent Wall Street Journal report, “Congress is poised to enact a law denying or revoking passports for U.S. citizens who haven’t paid their taxes.”

The article goes on to elaborate, “Under a new law expected to take effect in January, the State Department will block Americans with “seriously delinquent” tax debt from receiving new passports and will be allowed to rescind existing passports of people who fall into that category.”

Don’t let claustrophobia set in too quickly. This law is intended to fence in those taxpayers who owe federal taxes in excess of $50,000. As the article states, that total includes, “penalties and interest, which would be adjusted for inflation.”

While travel out of the country will be denied to seriously delinquent taxpayers in the U.S., they will be free to travel without restriction throughout the nation. And they may be traveling on a series of newly built highways. Because as the WSJ reports, the new law which, “has been passed in similar versions by both the House of Representatives and the Senate, is part of a highway-funding bill, H.R. 22, that is before a conference committee.”

If you know your name is going to be on the naughty list you might want to take care of that travel bug before the end of the year. Or better yet, contact an exceptional tax attorney.

 

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