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The Woodlands, Texas - Last month, a few tax-related measures were slipped into H.R. 22, known as the "Fixing America's Surface Transportation Act." These provisions could add some significant teeth to the IRS' ability to collect past-due tax debts at a time when budget shortfalls have limited the agency's ability to do so efficiently. They include the addition of a new section to the Internal Revenue Code, I.R.C. § 7345, which authorizes the Treasury Secretary to certify that a taxpayer has a "seriously delinquent tax debt." A "seriously delinquent tax debt" is defined as a federal tax liability which been assessed and is greater than $50,000, and for which the IRS has either filed a lien or otherwise issued a final levy notice. This certification will be issued by the IRS to the Secretary of State, and authorizes the Secretary of State to deny, revoke, or otherwise limit that taxpayer's U.S. passport. There are notable exceptions to the new law, most generally applicable when the taxpayer has already entered into an arrangement to satisfy the tax obligation (via an installment agreement or offer in compromise), or otherwise has a pending request disputing the amount of the assessed delinquency. If the taxpayer is abroad at the time their passport is revoked, the revocation can be limited to allow for the taxpayer to return to the United States.

The Woodlands, Texas - For business owners, the decision on how to classify those who work for them is very important. It's been known for a while that worker classification matters are one of the key target areas for the IRS, and in an era of constant cutbacks and budget shortfalls, it's an area that will continue to have their attention. As recently as the summer of 2014, the IRS announced that it was stepping up its audits of S Corporations, largely due to what has been perceived as abuses in this area. Combined with a joint information-sharing initiative between the IRS and the U.S. Department of Labor to ensure that such misclassifications are minimized, it's clear that this is an area of focus among multiple government agencies and demands attention from business owners and their advisors.