Tax Provisions in the FAST Act

The President signed the Fixing America’s Surface Transportation Act (The Act) into law on December 4, 2015. The bill extends spending authorization from the highway trust fund and other related funds while also containing two noteworthy tax provisions.

The Act allows the State Department to revoke or deny passports to individuals without social security numbers or with “seriously delinquent” tax debts.  A seriously delinquent tax debt is one that exceeds $50,000 (adjusted for inflation after 2016) and for which a notice of lien has been filed. Three exceptions apply:

  1. The individual is already under an installment agreement to pay their tax due
  2. Collection is suspended pending a due process hearing
  3. The individual has requested innocent spouse relief

The second noteworthy tax provision in The Act is the repeal of the 3 ½ month automatic extension for filing Form 5500, “Annual Return/Report of Employee Benefit Plan” recently created by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 earlier this year effective for returns with tax years beginning after December 31, 2015.  The automatic extension for filing this form is restored to 2 ½ months.

Please call your Hertzbach Tax Advisor with any questions or concerns at 800-899-3633. We look forward to speaking with you.