Tag Archives: IRS Tax Audits

IRS Audits (Update)

March 03, 2015  |   Posted by :   |   IRS Tax Audits   |   0 Comments

On 2/24/15, the USA Today article, IRS Audit Rate for Individuals Drop by Kevin McCoy, confirmed that in 2014 the IRS Audit Rate dropped to .86% its lowest level since 2005. Previously, IRS audits rose between 2005-2010 and have fallen 21.4% from 2011-2015. In 2014 the IRS audited 1.1m taxpayers with income less than $200k […]

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IRS Audit Statistics

December 16, 2014  |   Posted by :   |   IRS Tax Audits   |   0 Comments

According to the IRS Data Book (calendar year 2012, thru 9/30/12), in 2012, the IRS: 1. Processed 237.3 million federal tax returns 2. Collected $2.52 trillion in taxes 3. Issued tax refunds: $373.4 billion 4. Net tax collections: $2.15 trillion Since US government spends $3.79 trillion there was $1.27 trillion “revenue shortfall”. Largest source of IRS […]

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IRS Civil Tax Audits – Statute of Limitations

October 22, 2014  |   Posted by :   |   IRS Tax Audits   |   0 Comments

IRS civil tax audits generally have a 3 year statute of limitations which commences the later of: 1. Tax Return due date or, 2. Date of Tax Return Filing (evidenced by either electronic filing acceptance, or certified mail return receipt). The 3 year statute of limitations is extended to 6 years if 25% or more […]

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Individual Tax Insights: Audits Are Another Off-Field Headache for Athletes and Their Advisors 

August 26, 2014  |   Posted by :   |   IRS Tax Audits   |   0 Comments

By William Olver, Bloomberg In addition to facing so-called “jock taxes in multiple states [160 Daily Tax Report H-1, 8/19/14], professional athletes face another challenge: audits. Changes to federal returns often require corresponding modifications to state returns, which could be a significant compliance hurdle given the number of jurisdictions in which most professional athletes perform. […]

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IRS Audits Update – Fiscal Year 2012

March 28, 2014  |   Posted by :   |   IRS Tax Audits   |   0 Comments

The IRS 2012 Fiscal Year Performance Results (10/1/11 – 9/30/12, updated 12/31/13) confirm the IRS increased audits by more than 12%. 1. Total IRS Audits (FY 2012): 18,654,923 2. Total Additional Tax Assessed from Audits in FY 2012: $38,699,308,000 Please see IRS Data Book C Pub 55B, issued March, 2013.

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IRS Audits (2012) Part II

January 19, 2014  |   Posted by :   |   IRS Tax Audits   |   0 Comments

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: […]

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IRS Audit Statistics 2012

January 07, 2014  |   Posted by :   |   IRS Tax Audits   |   0 Comments

The IRS 2012 Data Fact Book reported during Fiscal Year 2012, (through 9/30/12) the IRS employed 97,941 employess (Budget $12.1billion), collected $2.5 trillion in taxes, processed 237.3 million tax returns. Please see link, which details IRS 2011 audit activities as follows: 1) Form 1040 – 143.4 million tax returns filed, audit rate 1.03% 2) Form […]

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U.S. Tax Planning for Passive Investments

December 26, 2012  |   Posted by :   |   International Tax Planning   |   Comments Off on U.S. Tax Planning for Passive Investments

By Gary S. Wolfe, Esq. The Wolfe Law Group, Los Angeles, CA David E. Richardson Mid-Ocean Consulting, Nassau, Bahamas In her 10/18/06 Wall St. Journal article, Insuring Against Hedge-Fund Taxes, Rachel Emma Silverman stated: “A small but growing number of wealthy investors have discovered a legal way to invest in hedge funds without paying income […]

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IRS Tax Audit Statistics

October 09, 2012  |   Posted by :   |   IRS Tax Audits   |   1 Comment

In 2010 the IRS audited 1.1% of 142,823,105 individual income tax returns. After 2010, the IRS shifted its tax audit focus away from large corporations (assets over $250 million). Instead, the IRS has spread its tax audit focus among disparate taxpayers as follows: 1) Increased tax audits for pass-through entities (S-Corporations, Partnerships). Previously, in 2010, […]

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