Passport Revocation by the IRS and State Department is Valid

IRS using Passport Revocation as a Collection Tool

The IRS has announced its intention to increase enforcement. It should be no surprise, given the annual tax gap and anticipated federal budget increases. The annual tax gap — the estimated difference between taxes owed and taxes collected — is about $600 billion, according to the US Treasury.

On September 20, 2022, the Fifth Circuit Court of Appeals upheld the constitutionality of the passport revocation statute.

The case, Franklin v US, considered the constitutionality of the power given to the IRS and State Department to restrict international travel when a taxpayer has a seriously delinquent tax debt. A seriously delinquent tax debt totals more than $55,000, including interest and penalties.

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