Congress Set To Revoke Passports For IRS Tax Debt
Sep 29, 2016, 2:19 am
#286
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The government was in a rush to get in the final rule, so sloppiness isn't a surprise.
They didn't want a rush of potentially impacted people being able to have a passport for a lot more years without surrendering into a deal with the IRS over civil debt claims. Why? Perhaps because there is doubt that they have the ability or willingness to revoke already issued passports for IRS civil claims except under the kinds of circumstances already applicable to HHS/child support-related passport denial program. In practical terms, that means no passport revocation unless and until using the US passport in conjunction with seeking passport/consular services.
I hope some people did get their new or renewal passports before this law ended up making it into a final rule and manage to keep using it in a way, if only to lessen the sense of duress of our citizens facing civil debt claims. Another workaround is to look into potential citizenship by descent programs. Beyond the US, various countries -- Hungary, Ireland, Italy, Luxembourg, Poland, and others come to mind -- open a door to various Americans who have documented evidence of having a right to claim citizenship to do so and thus get a non-US passport from within even the US.
I don't fancy civil debtors' prison, not even if the prison were so large as a large country like the US. Liberty interests are at stake when otherwise free US citizens are denied a US passport.
They didn't want a rush of potentially impacted people being able to have a passport for a lot more years without surrendering into a deal with the IRS over civil debt claims. Why? Perhaps because there is doubt that they have the ability or willingness to revoke already issued passports for IRS civil claims except under the kinds of circumstances already applicable to HHS/child support-related passport denial program. In practical terms, that means no passport revocation unless and until using the US passport in conjunction with seeking passport/consular services.
I hope some people did get their new or renewal passports before this law ended up making it into a final rule and manage to keep using it in a way, if only to lessen the sense of duress of our citizens facing civil debt claims. Another workaround is to look into potential citizenship by descent programs. Beyond the US, various countries -- Hungary, Ireland, Italy, Luxembourg, Poland, and others come to mind -- open a door to various Americans who have documented evidence of having a right to claim citizenship to do so and thus get a non-US passport from within even the US.
I don't fancy civil debtors' prison, not even if the prison were so large as a large country like the US. Liberty interests are at stake when otherwise free US citizens are denied a US passport.
Last edited by GUWonder; Sep 29, 2016 at 2:31 am
Sep 29, 2016, 5:37 pm
#287
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The State Department may still have no way to yet legally do this passport denial/revocation thing for the IRS, unless and until Treasury/IRS has put out a final rule for the certification of $50,000+ tax debt claim process.
Perhaps the window to get US passport/consular services is still open for those who would otherwise be subject to this IRS-related passport denial/revocation law.
Perhaps the window to get US passport/consular services is still open for those who would otherwise be subject to this IRS-related passport denial/revocation law.
Oct 29, 2016, 7:52 pm
#288
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"Seriously delinquent" civil tax debts aren't leading to revocation of already issued passports. At least not under the current rules in play.
Those "seriously delinquent" US citizens who got US passports issued earlier this year or before with many years of validity left on the passports are rather lucky in having bought themselves more time to use the passports -- as long as they avoid seeking US consular services and/or Treasury/IRS hasn't set up a certification and certification communication arrangement for "seriously delinquent" taxes.
Those "seriously delinquent" US citizens who got US passports issued earlier this year or before with many years of validity left on the passports are rather lucky in having bought themselves more time to use the passports -- as long as they avoid seeking US consular services and/or Treasury/IRS hasn't set up a certification and certification communication arrangement for "seriously delinquent" taxes.
Last edited by GUWonder; Oct 29, 2016 at 7:58 pm
Nov 1, 2016, 10:36 am
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Yes, the new law authorizes State to revoke a previously issued passport.
Note: while the new law requires State not to issue a new passport to someone who IRS has certified as seriously delinquent, it does not require State to revoke such a person's passport (although State may revoke).
The law also requires the Commissioner of the IRS to notify the person who has been certified to the Secretary of the Treasury as seriously delinquent at the same time (well, contemporaneously anyway) as the Secretary is notified. Note that this is just notification that the person is seriously delinquent, not that the person's passport has been affected since only State can do that. Perhaps GUW can shed a little light on what and how State acts on such a notice from Treasury?
Interestingly, although not all that uncommon but equally worrisome, is that at least one portion of this entry in the Federal Register near the end is incorrect: Part 51-Passports 2 a(3) says "The applicant is certified by the Secretary of the Treasury as having a seriously delinquent tax debt ..."
The italicized part is wrong - the Treasury Secretary does not make the certification. The Commissioner of the IRS makes the certification and tells the Treasury Secretary about it. The Treasury Secretary then informs SecState about the certification and then State does what it does.
Note: while the new law requires State not to issue a new passport to someone who IRS has certified as seriously delinquent, it does not require State to revoke such a person's passport (although State may revoke).
The law also requires the Commissioner of the IRS to notify the person who has been certified to the Secretary of the Treasury as seriously delinquent at the same time (well, contemporaneously anyway) as the Secretary is notified. Note that this is just notification that the person is seriously delinquent, not that the person's passport has been affected since only State can do that. Perhaps GUW can shed a little light on what and how State acts on such a notice from Treasury?
Interestingly, although not all that uncommon but equally worrisome, is that at least one portion of this entry in the Federal Register near the end is incorrect: Part 51-Passports 2 a(3) says "The applicant is certified by the Secretary of the Treasury as having a seriously delinquent tax debt ..."
The italicized part is wrong - the Treasury Secretary does not make the certification. The Commissioner of the IRS makes the certification and tells the Treasury Secretary about it. The Treasury Secretary then informs SecState about the certification and then State does what it does.
Nov 1, 2016, 12:40 pm
#290
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Could State request that DHS confiscate a PP if the owner attempts to enter the country?
Nov 1, 2016, 12:44 pm
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For other kinds of legal enforcement purposes, there are ways for State to get DHS to collect a passport and turn it over to State for revocation and disposal.
The IRS can get DHS/CBP to do somethings with regard to going after US persons at US ports of entry -- including information collection for the IRS. But the IRS can't directly get DHS to confiscate a US passport for revocation by State. The IRS would use pre-FAST tools if wanting to keep a US person in the US.
Last edited by GUWonder; Nov 1, 2016 at 12:54 pm
Nov 1, 2016, 3:10 pm
#292
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For FAST enforcement -- which is what this thread is about since the law was signed closer to a year ago -- there is no provision to do so. Laws, regulations and policies would have to change for that to take place for this for FAST enforcement.
For other kinds of legal enforcement purposes, there are ways for State to get DHS to collect a passport and turn it over to State for revocation and disposal.
The IRS can get DHS/CBP to do somethings with regard to going after US persons at US ports of entry -- including information collection for the IRS. But the IRS can't directly get DHS to confiscate a US passport for revocation by State. The IRS would use pre-FAST tools if wanting to keep a US person in the US.
For other kinds of legal enforcement purposes, there are ways for State to get DHS to collect a passport and turn it over to State for revocation and disposal.
The IRS can get DHS/CBP to do somethings with regard to going after US persons at US ports of entry -- including information collection for the IRS. But the IRS can't directly get DHS to confiscate a US passport for revocation by State. The IRS would use pre-FAST tools if wanting to keep a US person in the US.
So there is no mechanism provided to comply with picking up PPs?
Sounds like a government operation.
Nov 1, 2016, 3:20 pm
#293
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I like our government agents' operational capability constrained by the rule of law. More so when such limitation (on government operations) facilitates the exercise of the freedom to travel.
Nov 6, 2016, 6:07 pm
#294
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The mechanism for picking up passports for revocation as part of the FAST legislation compliance is left to the State Department. And the State Department picks up passports when they are handed to them by those applying for passports or other consular services and submitting a current passport for some such service.
I like our government agents' operational capability constrained by the rule of law. More so when such limitation (on government operations) facilitates the exercise of the freedom to travel.
I like our government agents' operational capability constrained by the rule of law. More so when such limitation (on government operations) facilitates the exercise of the freedom to travel.
Regardless till the final rules are drafted, published, commented on, comments commented on, and finally published as a final rule we have no clue what the process will be.
Nov 6, 2016, 6:22 pm
#295
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The passport is government property and must be returned upon demand. All State needs to do is demand the return. If they refuse they can require a LEO to collect it.
Regardless till the final rules are drafted, published, commented on, comments commented on, and finally published as a final rule we have no clue what the process will be.
Regardless till the final rules are drafted, published, commented on, comments commented on, and finally published as a final rule we have no clue what the process will be.
State already published a final rule on this.
Nov 7, 2016, 12:25 am
#296
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It's fairly easy for State to request immigration to keep a passport. The reality is that they just need to deactivate it and it becomes useless for travel.
Nov 7, 2016, 3:38 am
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It's not fairly easily done for this IRS-related purpose, as there is a complex of laws, regulations, rules and policies that must be considered and followed before doing so for this purpose.
Nov 15, 2016, 2:37 am
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Passports already issued to "seriously delinquent" taxpayers are not being revoked under this law unless and until such US person seeks US consular/passport services. In other words, CBP isn't using this law to seize passports of such persons
Oh, and Global Entry status remains valid for use with issued passports as long as the passport of such persons are not presented to State for consular/passport services. This is the current state of affairs.
Oh, and Global Entry status remains valid for use with issued passports as long as the passport of such persons are not presented to State for consular/passport services. This is the current state of affairs.