IRS is auditing more corporations and wealthier people
Have you ever thought to yourself , the little guy always seems to get it? Well, this time the IRS is changing its view. More corporations and wealthy taxpayers had their tax returns audited by the Internal Revenue Service this year, helping the agency haul in a record $47.3 billion in unpaid taxes.
IRS Commissioner Mark Everson said the audit rate of high-income individuals and families, those who report earning $100,000 or more, is “still too low.” “I haven’t set a specific target,” Everson said. “Our No. 1 area of emphasis has been to increase our work in high-income individuals and corporations. We do that because of the sense of fairness that resonates throughout the rest of the system.”
The IRS audited 1 in 63 wealthy individuals and families, the highest rate in 10 years. Approximately 1 in 117 taxpayers who earned less than $100,000 were audited.
Overall, about 1 of every 107 individuals faced an audit. This is more than last year’s rate of 1 in 129 taxpayers that had their tax returns examined.
Additionally, there was nearly $4 billion garnered through a settlement with taxpayers who used a tax shelter designed to hide unusually large income gains. This is proof that you can’t always hide your assets.
Audits of corporations and small businesses also climbed compared with last year. An average of 20% of corporations were audited during the fiscal year that ended Sept. 30. The largest of those, with assets of $250 million or more, faced the highest audit rate, about 44%.
The number of small businesses that faced an audit also rose after a significant dip the year before. About 1 in 126 small businesses, those with assets less than $10 million, were audited this year.
Some other noteworthy information, the IRS has refunds that cannot be returned to the taxpayer because they cannot be located. When you file your taxes this year, this will aid them in returning your refund to you. Another way to find out if there is a refund that didn’t make it to you is to search www.CashUnclaimed.com. This is a company that maintains a database of state and federal monies that are considered abandoned and unreturned. CashUnclaimed.com will help you locate any unclaimed property and also inform you how to claim the property.
