The Internal Revenue Service is getting tougher on the wealthy who try to avoid their taxes, in a story by the Wall Street Journal. The IRS has increased the number of audits conducted on people who ear over 500,000 dollars a year. Some accountants say this has doubled or tripled in the last decade.
Audits on the wealthy account for roughly 70 percent of the taxpayers audited. The WSJ reported the IRS employs six agents and a tax lawyer to conduct a comprehensive audit when the taxpayer’s income exceeds 10 million. The IRS will give limited amnesty to the wealthy that hold undeclared foreign accounts until August 31 but with tougher terms. Though some of the audits can be resolved quickly many other are heavily scrutinized and detailed.
The current federal budget crisis has meant a crackdown on the taxpayer, especially the wealthy who shelter their assets in foraging accounts to avoid paying taxes. The sheltering of money from the IRS can translate into heavy penalties which a tax attorney can work towards reducing for their clients.
The wealthiest 18 percent of the American may fall under the scrutiny of the IRS, but the other 30 percent should also be aware that they may audit them as well. It doesn’t matter whether you are wealthy or middle class, the IRS could examine your income and if found to be avoiding you taxes or delayed in paying your tax bill a tax lawyer will be the surest way to defend your assets.
