IRS
Increases Audits
IRS
enforcement numbers, released December 22, 2009, show that returns
under that amount have a 1 percent chance of getting audited.
Returns
showing income of $200,000 and above have a nearly 3 percent audit
chance. The percentage jumps to more than 6 percent
for returns showing earnings of $1 million or more.
The
percentages apply to both individual and joint returns.
The
number of audits jumped 11 percent from 2008 to 2009 for returns with
earnings of $200,000 or more, but rose 30 percent for returns showing
earnings of $1 million or more. For those under $200,000 the number of
audits remained steady.
The
IRS conducted 1.4 million audits of individual returns in the financial
year ended Sept. 30, with more than 1 million conducted through
correspondence with the taxpayer. The others were conducted through
face-to-face meetings with IRS auditors.
The
IRS does not do random audits, but does conduct "research audits" that
will test compliance in business tax categories.
In 2010,
the target will
be
payroll
taxes.
The
IRS will emphasize audits of businesses and scrutinize the
classification of independent contractors. All
businesses should prepare now to assure they can support
claiming independent contractors.
Call
me
at (856)
665-2121 today!
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