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View Full Version : Applying for a US Passport Triggering an Audit?


melbourne83
Nov 17, 2008, 02:10 AM
Hello,

I hope this email finds you well.

Firstly, I wanted to thank you for the informative article I found online. Good information is always appreciated ;]

Secondly, I have a quick question and am unsure who to ask. I realize that you cannot provide definitive advice or a free consultation. However, a quick opinion would be very sincerely appreciated as this is important to me.

I was laid off some time ago and was collecting unemployment.

The benefits have expired and I was offered a chance to fly out of the country quite recently but do not have a Passport.

I have read the, when you apply for a Passport, a mark is left on your tax record.

Although I have done nothing wrong, I still (like most!) dread the idea of a tax audit.

So the question is: do you think that applying for a Passport so soon after exhausting unemployment benefits will raise a red flag and increase my chances of being audited come tax time?

The trip will be paid for through family but the IRS will have no way of knowing that...

Anyway, thanks in advance for your time. Any advice would be sincerely appreciated.

Best Regards,
Charles

ebaines
Nov 17, 2008, 10:40 AM
I have never heard of there being a connection between passport applications and IRS audits. The IRS audits about 0.6% of all returns, with most of those audits being of self-employed people and high-income people with "questionable" tax shelters. If you are confident that you have not done anything shady on your returns, don't worry about it - being on unemployment should not be a concern.

AtlantaTaxExpert
Nov 17, 2008, 11:06 AM
I agree with ebaines; there is no [/I][/B]known[/I][/B] connection between passport applications and your tax records.

In fact, the IRS is famous for jealously guarding the taxpayer's privacy, though, since 9/11, the federal agencies have been cooperating more closely in sharing information.

Follow ebaine's advice: if you have done nothing wrong, you have nothing to worry about from the IRS, who has limited resources and much bigger fish to fry than someone on unemployment.

IntlTax
Nov 17, 2008, 08:04 PM
Applying for a passport should not trigger an audit.