The IRS will not share tax debt data with State Department contractors after all
What happened
The US Treasury Department has withdrawn a proposed rule that would have allowed the State Department to share tax information with its contractors. This means private companies helping the State Department deny or revoke passports will not see people's tax returns.
Why it matters
The IRS collects a lot of private financial data. Rules about who can see that data, and for what purpose, are usually very strict. This withdrawal means the government decided against expanding who gets access to sensitive tax information, even for a specific enforcement purpose.
The signal
Watch for any future proposals that try to expand access to tax data for government contractors, especially if they involve other agencies or different enforcement goals.