Starting in 2018, the IRS will be enforcing passport denials for tax delinquents. The IRS issued Notice 2018-1 on Jan. 16, 2018, which provides guidance for implementation of the new IRC 7345, added by Section 32101 of Fixing America's Surface Transportation (FAST) Act. This legislation requires the IRS to notify the Department of State of taxpayers certified to have "seriously delinquent tax debt."
The State Department is generally required to deny a passport application for certified individuals and may also revoke or limit passports previously issued to these individuals. The notice describes some exceptions to certification and taxpayer remedies.
Taxpayers who owe more than $50,000 (adjusted for inflation starting in 2016) in tax debts could see their passport applications or renewals denied unless they pay up. Taxpayers with an agreement to repay debt, undergoing a due process hearing, or innocent spouse relief proceedings are not subject to this provision.
Read more: FAST Act.
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