IRS Targeting High Income Taxpayers

IRS Targeting High Income Taxpayers Audit Rates Up 80% ___________ As promised by the current elected administration in what appears to be an economic profiling by the Internal Revenue Service in a society that cannot legally and will not profile potentially criminally dangerous individuals the government has launched a massive increase in audits designed specifically at those making what the government has deemed higher income. IRS statistics recently released for the audits performed by that agency show a significant bias in audit selection of those who are deemed to be in the higher income brackets. According to the latest 2010 statistics audits directed at the wealthy surged in 2010. Taxpayers audits in the higher income brackets were more than 18%, that is up 80% from 2009, when only 10% were audited, and in 2008, when 9% were audited. The IRS has grouped what they consider their “A-list” examiners who are trained in coordinated corporate and personal audits and will focus on the wealthier taxpayers including their business entities and personal income tax returns, and approach rarely coordinated in past years. The IRS has highly trained personnel in that group of auditors specifically focused to audit the higher income taxpayers. The IRS is planning to include international examiners as well for the team and is considering adding economists, appraisal experts and industry specialists. With an evermore troublesome economy and government financial needs growing for funds the IRS has targeted those with higher income and consider those targeted for examination a target rich opportunity that they fully intend to pursue. While the current targeted audit profile is higher the government considers anyone earning more than $100,000.00 annually as a high income earner. Our position with what appears to be an ominous future is to be prepared well in advance with solid tax compliant books and records with the guidance that we provide. Anything short of that approach will spell financial disaster when the IRS comes to visit. _____________________________________________________ We here at Muffoletto & Company believe that the more informed you are in regards to the rules and regulations that affect you the more we can be of service. Should you have questions relating to any tax or financial matters, or if you know of someone that could benefit from our assistance feel free in calling us at (818) 346-2160, or you can visit us on the web at www.petemcpa.com! Providing individuals, small businesses, corporations, partnerships, professionals, and other business entities with the necessary guidance and answers for a complex world.