The IRS released it’s 2010 Data Book which provides statistical data on its fiscal year 2010 audit activities. Since audits usually occur one to two years after a return is filed, the data found in the 2010 Data Book is based upon returns filed in calendar year 2009 (predominantly 2008 returns) and audited in fiscal year 2010.
Overall Chance of Being Audited:
Out of 142,823,105 total individual income tax returns filed in 2009, 1,581,394 were audited. This works out to about 1.1% (previous year was 1%). But the overall audit percentage can be misleading because certain types of returns are audited more frequently than others. Example, 473,999 (30%) were for returns that included an earned income tax credit claim (EITC).
Like any good business, the IRS concentrates their efforts where they produce the best results (revenue)! Thus, their audit selection process favors returns that claim the EITC (where a lot of fraud is prevalent) and higher-income taxpayers.
Want Affordable Peace of Mind:
It’s not too late to enroll in our Prepaid Audit Fee Protection program. This program allows you to purchase a block of five hours of time to be used toward our fees to represent you for the entire three-year statute of limitations period relating to the return. The cost of this service is $150 per tax year, a substantial savings over our hourly rates ranging from $85 to $300. For more information or to enroll, contact your Tax Consultant.
Henssler Financial believes you should Live Ready. That means mitigating the expense of a potential IRS audit.
Disclosures:
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