Client Alert: Delinquent Taxpayers May Have U.S. Passports Revoked

On December 4, 2015, as part of the Fixing America’s Surface Transportation Act (the “FAST Act”), Congress enacted Internal Revenue Code Section 7345, which requires the Internal Revenue Service to notify the Department of State when any taxpayer has been certified as owing a seriously delinquent Federal tax debt. The FAST Act generally prohibits the Department of State from issuing or renewing a United States passport to a taxpayer who has been certified to have a seriously delinquent Federal tax debt and also authorizes the Department of State to revoke or limit any United States passport previously issued. The Internal Revenue Service must also notify the Department of State if the certification is found to be erroneous after the debt is fully satisfied or the taxpayer enters into certain administrative remedies. Contemporaneous with notifying the Department of State, the Internal Revenue Service must notify the individual.