IRS Increases Audits of High-Income Taxpayers
January 6, 2012
The Internal Revenue Service has increased its audits of taxpayers at upper-income levels.
According to IRS statistics released on Thursday, 12.48% of taxpayers with income of $1 million or higher were subjected to audits in fiscal year 2011, compared to 8.36% in fiscal year 2010. Those with incomes of $200,000 or higher were audited at a rate of 3.93% in fiscal year 2011, compared to 3.10% in fiscal year 2010.
In contrast, 1.02% of taxpayers with incomes below $200,000 a year were audited in fiscal year 2011, compared to 1.04% in fiscal 2010.
Large corporations were also audited at a higher rate last year, with 17.6% of those with assets of $10 million and higher audited in fiscal 2011, compared to 16.6% in fiscal year 2010.
Those with assets of $250 million and higher were audited at a rate of 27.6% in fiscal 2011, compared to 25.3% in fiscal 2010.
Smaller corporations with assets under $10 million were also audited at a greater rate, with examinations of 1.02% of them in fiscal 2011, compared to 0.94% in fiscal 2010.
Michael Cohn writes for Accounting Today.
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