IRS Increasing Audits
Essex & Associates:: www.essexinc.biz January 24, 2012
According to IRS statistics released on Thursday January 5, 2012, 12.48 percent of taxpayers with income of $1 million or higher were subjected to audits in fiscal year 2011, compared to 8.36 percent in fiscal year 2010.
Those with incomes of $200,000 or higher were audited at a rate of 3.93 percent in fiscal year 2011, compared to 3.10 percent in fiscal year 2010.
Taxpayers with incomes below $200,000 a year were audited at approximately twice the rate they were 10 years ago.
All sized corporations were also audited at a higher rate last year.
Overall, the agency says, it audited nearly 1.6 million individual returns in 2011.
That rate has been growing gradually and is almost double the number audited in 2001, the IRS said.
In 2010 – the most recent year available – more than 8 in 10 individuals audited ended up paying additional taxes.
The IRS figures also showed that: In 2011, the agency garnisheed wages or seized money from bank accounts 3.7 million times, put liens on property 1 million times and seized 776 pieces of property.
If you receive one of those dreaded letters from the IRS, please engage a tax professional.
Wishing you many happy returns,
Wayne T. Essex Ph.D.
Essex & Associates
Tax, Accounting, Payroll
7501 Paragon Road
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