Bloomberg Business reports that the IRS, struggling with a smaller budget, audited 7.5 percent of households with incomes exceeding $1 million last year, the lowest level since 2009.  It also noted that the IRS audited 0.86 percent of all individual tax returns, down from 0.96 percent the year before, according to data released Tuesday. As a result, such audits are at their lowest level since 2004.

According to Bloomberg, the decline in audit rates is “deeply disturbing,” IRS Commissioner John Koskinen said in prepared remarks for a speech Tuesday to the New York State Bar Association.“ This continues a long-term trend that carries serious implications for our tax system and the nation,” he said. “The math is pretty simple. There are fewer audits because we have fewer auditors.”

Read full article at IRS Audits of High-Income U.S. Households Drop to 6-Year Low – Bloomberg Business.

See also USA Today,IRS audit rate for individuals drops.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.