Federal Government Policy and Business

Your Passport Could Be Cancelled If You Owe IRS

Forbes: The idea of tying travel to taxes has been percolating in Washington for years. The IRS and Justice Department cooperate. For example, they can have tax cheats arrested when they land on U.S. soil. It doesn’t help that FATCA, the Foreign Account Tax Compliance Act, penalizes foreign banks that don’t hand over American account holders. But, now, the feds want to go after people even if they are reporting everything correctly, but have unpaid tax debts.

Congress thinks America should do more to grab people on the move, or to prevent them from traveling in the first place. And unlike prior bills on this topic that have stalled in Congress, this one is about to become law. It is part of H.R.22, which has passed both the House and the Senate. It is in conference, so something could change. But it is expected to pass, adding new section 7345 to the tax code.

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