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IRS Increases Audits of Higher Income Individuals and Corporations

Irs_logo_147The IRS yesterday released enforcement data showing that enforecement revenue (from collections, examinations, and document matching) increased 10% in FY 2005 to $47.3 billion:

Here are the FY2005 audit rates for various taxpayers:

  • 0.93% of individual returns, an increase of 20% over FY2004
  • 1.58% of individuals earning more than $100,000
  • 0.85% of individuals earning less than $100,000
  • 0.79% of small businesses (less than $10 million of assets) organized as corporations
  • 20% of larger corporations (assets over $10 million), an increase of 14% over FY2004
  • 44% of the largest corporations (assets over $250 million)

Other noteworthy odds:

  • 0.18%:  odds of catching a ball at a major league baseball game
  • 0.73%:  odds of dying in a transportation accident during your lifetime
  • 0.85%:  odds of being on a plane with a drunken pilot
  • 1.20%:  odds of a pregnant woman having twins

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