Do you want to be a millionaire? — 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 is sticking to its promise to target more high income individuals for audits. According to figures posted on the IRS web site, one out of every 11 millionaires faced an audit in 2007. Audits of individuals with incomes of $1 million or more increased 84% from 2006 to 2007. At the same time, the overall audit rate for all individuals inched above the 1% mark—to 1.03% from 0.98%—for the first time since 1998. Audits of S corporations and partnerships also increased, but audits of large corporations declined from the prior year. These trends reflect increased efforts by the IRS to close the perceived $300 billion tax gap.