IRS reports increase in audits and taxpayer services for 2007
AccountingWeb.com has recently posted the following:
During 2007 the IRS audited 84 percent more returns of individuals with incomes of $1 million or more than during 2006. Overall, enforcement revenue reached $59.2 billion, up from $48.7 billion in 2006 and nearly $34.1 billion in 2002.
Highlights of the enforcement and services numbers for fiscal year 2007, which ended on September 30, include:
Individuals
Audit rates increased in 2007, both for overall individual rates and for higher-income taxpayers.
Businesses
In the business arena, the IRS continued efforts to review more returns of flow-through entities – partnerships and S Corporations. The agency’s business numbers reflect that they have placed more emphasis in the growing area of these flow-through returns. While large corporate audits are down slightly, they have increased their focus on mid-market corporations – those with assets between $10 million and $50 million dollars. The IRS enforcement budget in 2007 was similar to the budget in 2006, and in times of flat budgets, the agency states that it cannot increase activity across the board but must address the areas where there is growth and potential risk.
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Washington, IRS more likely to audit millionaires
Washington IRS more likely to audit millionaires
There’s at least one advantage to not being a millionaire — less chance of being audited by the Internal Revenue Service.
The tax agency said Thursday that in the 2007 budget year it audited one out of every 11 with incomes of $1 million or more. Among those with incomes of $100,000 or less, 99 out of every 100 escaped further IRS scrutiny…There were 31,382 audits of those with $1 million incomes, up 84 percent from the 17,015 audited in 2006.
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Cost for Unreported Income: 30 Months in Jail
Cost for unreported income: 30 months in jail
A Cohasset man was sentenced yesterday to 30 months in federal prison for failing to report more than $1.6 million in taxable income to the Internal Revenue Service between 2000 and 2004.
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