IRS Takes Harder Look at the Wealthy

Submitted by rkoreto on Mon, 01/09/2012 - 11:00

The international game show asks "Who wants to be a millionaire?" Maybe fewer than before, with the IRS taking a much closer look at those in the higher income ranges.

The IRS just released enforcement results tables for the past few fiscal years. For taxpayers earning less than $200,000, the audit rate in 2011 was 1.02 percent, down slightly from 1.04 percent in 2010. For those making $200,000 or more, the rate increased from 3.10 percent to 3.93 percent. But for taxpayers with incomes of $1 million or more, the rate increased from 8.36 percent to 12.48 percent.
 
The corporate rates went up too, but without the corresponding high jump: Corporations with assets of less than $10 million saw audit rates rise from 0.94 percent 1.02 percent, and  those with $10 million or more saw a rise from 16.58 percent to 17.64 percent.
 
The rate for the largest corporations—those with $250 million or more in assets—rose from 25.3 percent to 27.6 percent. This 1 in 4 rate may seem high, but is actually one of the lowest rates of the past decade: In 2005 it was 44.1 percent.

 

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