Especially for the Rich
The IRS released new data that showed that your chances of being audited rose dramatically as your income increased.
In 2011, the audit rate for taxpayers earning more than $1 million in income was 12% in 2011, up from 8% in 2010 and 6% in 2009. In contrast, only 4% of taxpayers earning more than $200,000 were audited in 2011, up from approximately 3% for the previous five years. Finally, the audit rate for taxpayers earning less than $200,000 remained around the 1% level, the same as it’s been for the past few years.
Overall, the IRS audited nearly 1.6 million of the 141 million individual returns in 2011, just above 1%. Back in 2001, only 0.6% of all taxpayers were audited.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written. And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client: Before relying on any information