Relevant tax tips and updates for small business owners and individuals.
Monday, January 16, 2012
2011 Audit Statistics Released
The IRS audited 1 in 8 individuals with incomes over $1 million during their last fiscal year. In 2011 1.02% of individual returns with incomes under $200k and 3.93% of individual returns with income of $200k + were audited. C corporations with assets of $10mil and higher were audited 17.64% of the time, $250mil and higher 27.6%, and under $10mil 1.02%. The IRS audited .4% of partnerships and .42% of S corporations. The IRS budget was cut by $305 million for FY12 which will likely have an impact on the number of audits during 2012.