Owe the IRS over $50K? Then kiss your passport goodbye

Owe the IRS over $50K? Then kiss your passport goodbye

If you’re behind on you’re taxes and planning a trip abroad, you might be out of luck.

A provision in the highway bill that is currently being reconciled by the conference committee will allow the Department of State to nullify passports of those owing $50,000 or more in federal taxes, interest, and penalties.

Estimates by the Joint Committee on Taxation project the law will raise $398 million over the next 10 years, according to the Wall Street Journal. Those who are paying down their delinquent taxes to the Internal Revenue Service in a payment plan or legally contesting a tax case would not be subject to the rule.

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The provision does allow for exceptions to be made in the case of a “humanitarian” emergency.

Critics of the measure say it discriminates against Americans living abroad. In a letter written to Congress in early-November, American Citizens Abroad, a non-profit advocacy group, said no action should be taken until hearings have been held to discuss the implications that may result in its implementation.

The law is expected to take effect January 2016.

This report, by Juliegrace Brufke, was cross-posted by arrangement with the Daily Caller News Foundation.

LU Staff

LU Staff

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