IRS Audits Up 11 Percent

As the tax season opens, the Internal Revenue Service (IRS) always likes to remind taxpayers that it still audits returns. The taxing agency has announced that it increased the number of returns audited by nearly 11% in 2010, claiming “wealthy” taxpayers and “big businesses” were most likely to be targeted.

“We saw individual audits increase, reaching the highest rate in the past decade,” said Steve Miller, IRS deputy commissioner for services and enforcement. “The bottom line shows enforcement revenue topped $57 billion, up almost 18 percent from last year.”

The IRS said it audited more than 8% of returns with incomes above $1 million. There was a 7% increase in the number of audits of firms with $10 million or more in assets. ◆