New IRS data shows steady rise in audits — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
The IRS audit rate continues to climb, especially for taxpayers earning more than $100,000. The agency conducted 1.21 million audits of individual returns in Fiscal 2005, up almost 12 percent from the previous year, according to the IRS 2005 Data Book. Also audited: 2.21 percent of those who filed Schedule C business returns last year, up from 1.47 percent the year before. Audits of Schedule C filers who earned above $100,000 nearly doubled, from 1.86 percent in 2004 to 3.65 percent last year.
If you handle payroll compliance, beware: As other tax revenue sources dry up, the IRS is hiring 700 new revenue agents whose only job will be to hunt down payroll-law violations. That means intense new scrutiny of your W-2s, 1099s, 1095s and other payroll tax reporting compliance....Click here to find out more.