On December 4, 2015, the President signed into law HR 22, which requires the IRS to notify the State Department of any U.S. citizen who owes more than $50,000 in federal taxes. The State Department is then directed to revoke the person's U.S. passport and to deny issuance of any new passport until the debt is paid.
The IRS is directed not to notify the State Department until all administrative remedies have been exhausted. Those who have agreed to a payment plan with the IRS and are compliant will be exempt.
It is unclear at this time what sort of advance notice, if any, the State Department will provide before revocation of the U.S. passport.
For more information, see Section 32101 of the Act here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.