Proposal Makes It Easier to Revoke Passports, Targets IRAs
The Senate Finance Committee this week will begin consideration of a $9 billion infusion to keep the U.S. Highway Trust Fund running through the end of the year.
The biggest chunk of money is projected to come from a provision that would force people who inherit IRAs and other retirement plans to take required taxable distributions over five years. Under current law, they take those payments over a longer period that is linked to their life expectancy. The change is expected to generate $3.7 billion in revenue over 10 years.
The proposal also would require the Secretary of State to revoke passports for delinquent taxpayers. Current law allows the State Department to refuse to issue or renew a passport if an applicant owes child support in excess of $2,500 or certain types of federal debts, but does not extend to tax delinquency.
Editor’s Note: As we predicted, the government is proposing more incremental moves against your IRA. And at the same time making it easier for the government to revoke your passport—a solid reason to have a second passport. Expect these measures to increase in frequency and intensity as the US government sinks deeper into bankruptcy.