IRS Scraps Proposed Rule on Tax-Return Disclosure to State Dept.

The IRS and the Treasury Department withdrew a proposed rule from 2018 that would have authorized disclosure of tax-return information to State Department contractors with regard to passports.

The withdrawal notice (REG 129260-16; RIN 1545-BN96) was issued Tuesday.

The 2018 rule would have authorized the State Department to disclose tax returns and tax-return information to its contractors who assist the department in denying or revoking the passports of individuals identified as having a seriously delinquent tax debt, pursuant to the Fixing America’s Surface Transportation (FACT) Act of 2015.

The proposed rule was withdrawn as unnecessary because the State ...