Lucy Lee and Stuart Leblang Discuss New Law Affecting Those Delinquent on Tax Payments
The article discusses a new law authorizing the revocation or denial of U.S. passports to those individuals with certain tax delinquencies. That is, more than $50,000 of unpaid federal taxes, including penalties and interest. It does, however, provide for a humanitarian and emergency exception.
Lee and Leblang write that with the enactment of the new law, “the IRS has added another “power tool” to its arsenal of tax enforcement in addition to the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act.” Its practical implication, they add, “is to broaden the reach of the IRS into the uncharted territory of impacting the mobility of U.S. citizens for tax delinquencies.”
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