Daily Tax Update - September 2, 2016: State Department Issues Final Rule on Passports for Individuals With Seriously Delinquent Tax Debts

State Department Issues Final Rule on Passports for Individuals With Seriously Delinquent Tax Debts:  Today, the State Department issued RIN 1400-AD97 incorporating statutory passport denial and revocation requirements for certain individuals who have seriously delinquent tax debt as defined by the Fixing America’s Surface Transportation (FAST) Act or submit passport applications without correct Social Security numbers.  The new rule requires the State Department to deny a passport to an individual who is certified by the IRS to the Secretary of the Treasury as having a seriously delinquent tax debt as described in 26 U.S.C. 7345.  A “seriously delinquent tax debt” is generally an assessment of $50,000 or more for which a lien or levy has been filed.

IRS Postpones Applicability Date in Tax-Exempt Bond Safe Harbor Guidance:  Today, the IRS announced it is delaying the applicability date of recent guidance providing a safe harbor for issuers that use tax-exempt bonds (click here for prior DTU coverage).  Due to questions about the application to certain recurring agreements, the IRS will apply old safe harbor provisions to contracts entered through August 18, 2017.