Wednesday, April 13, 2011

Study: New way for IRS to intimidate taxpayers...withhold Passports

The Government Accountability Office, at the request of Congress, released a study Monday examining how the government could leverage the passport process to recover unpaid taxes. The office found that in fiscal 2008, Americans who received passports owed a collective $5.8 billion to the IRS. The debt of the internationally traveling public, though, is likely far larger, considering that estimate only factored in a year's worth of recipients.

The GAO report projected that linking passports and tax obligations could lead to a windfall for the IRS, if Congress opts to draft legislation making that possible.