IRS Audits (2012) Part II

According to the IRS Data Book (calendar year 2012 through 9/30/2012) in 2012, the IRS processed more than 237.3 million federal tax returns, and collected $2.52 trillion in taxes, issued refunds ($373.4 billion) net tax collections ($2.15 trillion). Since the U.S. government spent $3.79 trillion in expenditures, there was a “revenue shortfall in 2012 of: $1.27 trillion.

The largest source of IRS tax receipts is from individual, estate and trust income taxes allocating for nearly 55% of gross tax collections ($1,387,836,515).

IRS Audits

1. Corporate Tax: C-corporations (Form 1120) had 3.4 times the audit rate vs. S-corporations/Partnerships: C-Corp (1.64%), Partnerships (.47%), S-Corp (.48%)

2. Estate Tax: In calendar year 2011 (through 9/30/11): 12,582 Estate Tax Returns filed, 3,762 Audited (29.90%)

3. Gift Tax Returns: In calendar year 2011, 223,090 filed, 3,164 Audited (1.42%). Estate tax returns had 21 times the audit rate as gift tax returns. Estates $5 million – $10 million had a 60% audit rate. Estates over $10 million, 100% audit rate.

4. Individual Taxes: In calendar year 2011 (through 9/30/11) 143,399,737 individual returns filed, 1,481,966 audited (1.03%).

Less than 1% of all individual tax returns reporting taxable incomes of between $25,000 – $200,000 were examined.

If returns reported business income, up to 4 times more likely to be audited then returns without business income.

If returns reported income of $10 million or more, 12 times more likely to be audited than average individual tax returns.

Tags:

Comments are closed.