March 5, 2007 5:01 AM
Millionaire's Growing Problem: Tax Audit
If you are receiving 7 figure income, your tax return is six times more likely to get audited. Still, it is probably a nice problem to have -- I wish I will have this level of annual income one day.
From MSBNC:
Your chances of being audited are pretty good if you’re wealthy. They’re not bad if you’re not.
About 1 in 16 taxpayers with income of $1 million and higher was audited last year, a 33 percent increase from the previous year.
“If you’re earning that kind of money and we notice a problem, you’re going to hear from us,” IRS Commissioner Mark W. Everson said in a statement on the agency’s enforcement figures for the 2006 fiscal year.
...
Audits of taxpayers with incomes above $100,000 were up 18 percent from 2005, the highest figure in more than a decade. Audits of certain businesses, especially “S” corporations and partnerships, increased by 34 percent, though audits of larger corporations — with assets over $10 million — were down slightly.
Overall, audits of individual taxpayers were up by 6 percent in 2006; total individual returns audited were 1.3 million, for an average individual audit risk of about 1 in 100.
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