Obama Travel Ban: Trump's State Department Will Soon Revoke Passports Over Unpaid Taxes
President Donald Trump's recent immigration ban has made international travel difficult for people from the seven targeted countries. But a law under former President Barack Obama going into effect soon will limit international travel for another group: people behind on their taxes.
A provision in a 2015 transportation bill will require the IRS to notify the State Department of individuals with seriously delinquent tax debt of more than $50,000. The State Department will then use that information when making passport decisions, which include revoking passports that have already been issued or refusing to issue or renew a passport to anyone the IRS sent them information on "except in emergency circumstances or for humanitarian reasons."
Although the bill was signed into law by Obama in December 2015, it has taken time for the government to implement the mechanism necessary to facilitate communication between the IRS and the State Department. The changes were just posted on the IRS website but will not go into effect for a few more months.
The law was not expected to automatically affect anyone with a tax debt in excess of $50,000, however. The IRS will only send information on individuals to the State Department if a "notice of federal tax lien has been filed and all administrative remedies under IRC § 6320 have lapsed" or a "levy has been issued." The law is essentially a last ditch effort to get individuals to pay their taxes. The State Department will also hold any flagged applications for 90 days in order to let applicants resolve their tax issues, pay their debt or enter into a payment plan or agreement.
It's not just travelers who are being targeted for unpaid taxes. In January, Rep. Jason Chaffetz (R-UT) introduced a bill that would make people with seriously delinquent tax debt ineligible for employment by federal agencies. The law would also include a ban on government contracts or grants to people or companies with seriously delinquent federal tax debts.
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