What Are the FAST Act’s Tax Provisions?

The Fixing America’s Surface Transportation (FAST) Act was a legislative measure designed to provide long-term funding for the nation’s transportation infrastructure. Signed into law on December 4, 2015, it authorized $305 billion over five years for roads, bridges, and mass-transit systems. To help pay for these expenditures without raising fuel taxes, the act incorporated several revenue-generating provisions that introduced changes to the tax code, affecting individuals and businesses in specific circumstances.

Passport Revocation for Tax Debt

A provision in the FAST Act, found in Internal Revenue Code Section 7345, grants the IRS authority to certify a “seriously delinquent tax debt” to the U.S. State Department. This certification directly impacts a person’s ability to travel internationally. The State Department generally will not issue a new passport to an individual with such a debt and holds the authority to revoke or limit an existing one.

To be classified as a “seriously delinquent tax debt,” the total unpaid federal tax liability must exceed a specific threshold. This figure, which includes tax, penalties, and interest, is adjusted annually for inflation and is $65,000 for 2025. The IRS must also have filed a Notice of Federal Tax Lien where the challenge period has expired, or the IRS must have issued a levy.

Before the IRS certifies the debt, the taxpayer has the right to administrative and judicial proceedings to challenge the underlying tax liability. The certification cannot occur while a collection due process hearing is pending or while a taxpayer is negotiating or adhering to certain resolution agreements.

Certain types of tax debt are explicitly excluded from this designation, even if they exceed the monetary threshold. A debt is not considered seriously delinquent if it is being paid under an installment agreement or an accepted Offer in Compromise (OIC). Debts are also excluded if a collection action is suspended because a taxpayer has requested innocent spouse relief under IRC Section 6015.

Resolving a Tax Debt Certification

Once the IRS certifies a seriously delinquent tax debt, the taxpayer must take specific actions to have that certification reversed. The FAST Act requires the IRS to notify the State Department within 30 days of the debt being resolved, which removes the restriction on the taxpayer’s passport. The most direct method is to pay the tax debt in full, which prompts the IRS to issue a decertification notice.

Entering into a formal, approved Installment Agreement with the IRS is another path to reversal. The IRS will notify the State Department that the certification should be reversed even though the debt is not yet fully paid. An Offer in Compromise (OIC) that has been accepted by the IRS also serves to reverse the certification. Similarly, if a taxpayer is granted innocent spouse relief, the associated debt is removed from the seriously delinquent category, triggering a reversal.

Changes to Tax Return Due Dates

The FAST Act implemented changes to the filing deadlines for several business tax returns to create a more logical flow of information. The adjustments were intended to ensure that owners of pass-through entities receive their necessary tax documents, such as the Schedule K-1, before their individual income tax return filing deadline. This helps prevent the need for filing extensions.

For partnerships filing Form 1065, the due date was moved forward by one month. The new deadline is March 15 for calendar-year partnerships, changed from the previous date of April 15. This earlier deadline gives partners the necessary information from their Schedule K-1s, which report their share of the partnership’s income, deductions, and credits, well in advance of the individual Form 1040 deadline.

Conversely, the due date for C-corporations filing Form 1120 was shifted. For C-corporations with a calendar year-end, the original due date was March 15. The FAST Act moved this deadline to April 15. This change aligns the corporate filing deadline with the traditional individual tax deadline, providing corporations with an additional month to finalize their financial statements and prepare their tax returns.

Other Notable Tax Provisions

The FAST Act authorizes the IRS to use private debt collection agencies to pursue certain inactive tax debts. This applies to debts the IRS is no longer actively trying to collect due to a lack of resources or other factors. The private collection agencies work on behalf of the IRS but do not have the same enforcement authority, such as issuing levies or liens.

Another provision extended the statute of limitations for assessment in specific international reporting situations. Taxpayers who fail to file certain information returns related to foreign assets, such as Form 3520 or Form 3520-A, may face an indefinite period for the IRS to assess tax. The statute of limitations for the taxpayer’s entire income tax return for that year will not expire until three years after the required international information return is filed.