The change is tucked into a highway funding bill, H.R. 22, that is expected to pass in December, the WSJ reported. If enacted as is, the law would go into effect Jan. 1 and would apply to current debts. Estimates from the Joint Committee on taxation project the move could raise $398 million over 10 years.
It’s not clear who would be most affected. About two-thirds of taxpayers pay more taxes than they owe and receive tax refunds, according to the IRS. But some consumer advocates worry the change would hurt U.S. citizens living abroad, who may rely on their passports for their daily routines.