There’s good news and there’s bad news. Since it’s tax-related, let’s rip the bandage off quickly and begin with the bad: the IRS is economically profiling Americans, subjecting 84% more tax returns to audits in 2007. While auditees might grumble, targeted auditing might actually be good for the country. It collected an additional $10 billion taxes than the previous year.
Now, you ask, how is an 84% increase in IRS audits a good for me?
Well, if you earn more than $1 million a year, it is and it isn’t. The odds you’ll face an audit are 1 in 11, according to the IRS. The good news: you earn more than $1 million a year.
Earn less than $200,000 a year? Keep your tax filings on the up-and-up, but your chance of being audited is 1%.
The IRS plans on focusing the bulk of its auditing efforts on individuals making well more than $1,000,000. It’s a better bang for their buck.