In a recent article on the Wall Street Journal's Wealth Report, IRS Targets Rich Taxpayers: Audit Rates Up 80%, Robert Frank writes about the IRS increase in audits of rich taxpayers.
Frank cites the 2010 IRS Data Book, which shows that audits for the wealthy surged in 2010. He writes that "[a]mong taxpayers who reported $10 million or more in income in 2010, more than 18% were audited. That is up 80% from 2009, when only 10% were audited, and in 2008, when 9% were audited."
Likewise, Frank writes that other high-income taxpayers saw increased rates of audits:
The report showed that among taxpayers who reported $5 million to $10 million in income, nearly 12% were audited, compared with 6% in 2008. For those earning $1 million to $5 million, audits rose to 7% in 2010 from 4% in 2008.
Posted by Kyle Petit, Associate Editor, Wealth Strategies Journal.
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