IRS tightening grip – issues proposed regs on information reporting by U.S. passport applicants

IRS has issued proposed regs that set out rules on information reporting by passport applicants under Code Sec. 6039E.

Any individual who applies for a U.S. passport, or the renewal of a passport, or applies for the privilege of becoming a permanent U.S. resident  (green card application) must include with that application a statement containing certain items of tax information. (Code Sec. 6039E(a)) The information that must be included by both passport and immigrant applicants includes the applicant’s taxpayer identification number (TIN), if he has one. (Code Sec. 6039E(b)(1))

The 1992 proposed regs provided guidance for both passport and permanent resident applicants to comply with information reporting rules under Code Sec. 6039E, and indicated the responsibilities of specified federal agencies to provide certain information to IRS. Proposed regulations issued January 25th, replaces the 1992 regulations.

The new proposed regs under Code Sec. 6039E would require an individual applying for a U.S. passport, other than an individual who applies for an official passport, diplomatic passport or passport for use on other official U.S. government business, to provide certain information with his passport application. (Prop Reg § 301.6039E-1(a))

The passport applicant would have to provide:

(1) the applicant’s full name and, if applicable, previous name;

(2) address of regular or principal place of residence within the country of residence and, if different, mailing address;

(3) taxpayer identifying number (TIN); and

(4) date of birth. (Prop Reg § 301.6039E-1(b)(1))

The required information would have to be submitted with the passport application, regardless of where the applicant resides at the time it is submitted. (Prop Reg § 301.6039E-1(b)(2))

IRS could impose a $500 penalty amount on any passport applicant who failed to provide the required information. (Prop Reg § 301.6039E-1(c))