The Treasury Inspector General for Tax Administration (TIGTA) completed its statutory audit of the IRS' Collection Due Process program and released its final report on August 30, 2016. The Collection Due Process program was designed as an opportunity for taxpayers to have an independent review of proposed IRS levies and liens. TIGTA found that the IRS' internal compliance with the program has improved overall, with fewer misclassified taxpayer cases as compared to the previous year's review.
Collection Due Process Program Has Improved, TIGTA Finds
Passports of Individuals with Seriously Delinquent Tax Debts May Be Revoked
On September 2, 2016, the U.S. Department of State finalized a rule that will result in the denial or revocation of passports for persons with seriously delinquent tax debts, effective immediately. A "seriously delinquent tax debt" generally means an assessment of $50,000 or more for which a lien or levy has been filed. The Internal Revenue Service (IRS) will certify the status of these individuals for the Secretary of the Treasury.
Tax Court Proposes New Rules Related to IRS Passport Revocation
The United States Tax Court Chief Judge Michael B. Thornton recently announced that the Tax Court has adopted interim amendments and has issued proposed amendments to the Tax Court Rules of Practice and Procedure relating to the Bipartisan Budget Act of 2015, the Fixing America's Surface Transportation Act, and the Protecting Americans from Tax Hikes Act of 2015. Among the proposed amendments to the Tax Court Rules are rules relating to the new ability of the IRS to issue a certification to the Secretary of State for action with respect to denial, revocation, or limitation of a passport in the case of "seriously delinquent tax debts." I.R.C. sec. 7345(a).
