Audit

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I got some questions about the cartoon, so here is a Q&A about estate tax that may clarify things a bit.

While another tax season comes to close, here are some fun facts about audits for us to ponder (source: New York Times)..

- IRS has increased the audits of tax returns filed by people making $25,000 - $100,000 from 147000 in 2000 to 436000 returns last year.

- For those making less than $25,000, audits rose from 369000 to 589000 (apparently earned income tax credit is a red flag).

- Audits of people making more than $100,000 rose from less than 100000 to more than 256000.

- 17000 audits were done on people who made more than a million, up from 9600.

- Own a large farm, preferably with income more than $100,000? You are less likely to be audited now, than in 2000 (only category where the rate fell). 2150 in 2000, compared to 1547 in 2006.

Comments

Cindy said…
Boy... as if I didn't have enough anxiety about tax time. Interesting that almost half a million people making $25K to $100K are audited, but only 9,000 people making more than a million are audited. I'm sure some of the disparity is just due to fewer people making more than a million, but that number still seems a bit skewed away from the rich. Love the cartoon!
April 18, 2007 at 5:37 AM
Jose said…
They are trying a different method: do a lot of audits, but not as thorough. Here is the link to the original article.
April 18, 2007 at 7:09 AM
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