Update on Passport Revocation Provision

Although the IRS has not yet started certifying tax debt to the State Department for the Passport Revocation Provision legislation (certifications to the State Department will begin in January 2018), in recent meeting with the Taxpayer Advocate and other administrative offices, the opinion is that FBAR penalties will not considered as seriously delinquent tax debts and won’t be certified for passport denial or revocation.  The IRS’s webpage on passport revocation alludes to this issue indirectly, see: https://www.irs.gov/businesses/small-businesses-self-employed/revocation-or-denial-of-passport-in-case-of-certain-unpaid-taxes. The website makes clear that the only “seriously delinquent tax debt” is eligible for certification to the Department of State and FBAR penalties are not federal tax debt.  FBAR penalties are written under Title 31 which is not tax legislation which would be written under Title 26.  ACA continues to monitor developments on this and will update as information is made available.