IRS audit rates rising for millionaires

The prospect of being audited is daunting, but if you earn less than $200,000 a year the chances of an audit are relatively low. However, if you earn more than a $1 million your chances of being audited increase significantly.

The IRS released figures on Thursday showing that 12 percent of high earners were audited last year. That is twice the number of audits conducted in 2009 and four percent more than in 2010.

The data also showed that large corporations were also targeted by audits. Corporations making $10 million or less, only 1 percent were audited while 28 percent of corporations making $250 million or more received notices from the tax man. Audits are serious matter and often necessitate the help of a tax attorney.

 IRS deputy commissioner for services and enforcement said in an interview, that the increased audits are deigned to “to assure those at the lower end of the spectrum know that those at the higher end of the spectrum are subjected to the same rules and enforcement.”

The increased audits and other legal tax matters have resulted in the recovery of an additional $55 billion in tax revenue.

In 2010, 8 out of 10 entities audited had to pay additional taxes. Making your tax returns audit proof requires the expertise of a tax lawyer.  

If any questions arise, or you are facing legal action the knowledge and skills of a tax attorney is indispensable.