Tags: irs | audits | low | 6 | year

IRS Audits of High-Income Households Drop to 6-Year Low

Tuesday, 24 Feb 2015 01:06 PM

The U.S. Internal Revenue Service, struggling with a smaller budget, audited 7.5 percent of households with incomes exceeding $1 million last year, the lowest level since 2009.

The tax agency audited 0.86 percent of all individual tax returns, down from 0.96 percent the year before, according to data released Tuesday. Such audits are at their lowest level since 2004.

IRS Commissioner John Koskinen has been arguing for more money for the IRS, which had its budget cut by about 3 percent for the fiscal year that ends Sept. 30 and now has the responsibility to administer health-insurance subsidies.

President Barack Obama’s budget plan sent to Congress earlier this month calls for an 18 percent increase for the tax agency to $12.9 billion. The Republican-led Congress probably won’t agree.

The IRS audit rate peaked in fiscal year 2011. That year, the agency audited 1 in 90 individuals and 1 in 8 people with incomes exceeding $1 million. Last year, those rates were at 1 in 116 and 1 in 13, respectively.

An audit, or examination in IRS terms, is a review of the finances of an individual to check for compliance with tax laws. It can be triggered by random selection, computer screening or document matching.

The data were first reported by USA Today.


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The U.S. Internal Revenue Service, struggling with a smaller budget, audited 7.5 percent of households with incomes exceeding $1 million last year, the lowest level since 2009.The tax agency audited 0.86 percent of all individual tax returns, down from 0.96 percent the year...
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2015-06-24
Tuesday, 24 Feb 2015 01:06 PM
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