Could you face an audit in 2008?
Your chances have increased. The payoff for the IRS? $59.2 billion in enforcement revenue, compared to $48.7 billion in 2006 and $34.1 billion in 2002. The IRS filed 3.8 million levies and almost 700,000 liens during 2007, an increase from 2006.
Individuals audited in 2007 compared to 2006:
| Income level |
Audits in 2007 |
Audits in 2006 |
Percent increase |
| $1 million or more |
31,382 |
17,015 |
84% (1 of every 11) |
| $200,000 or more |
113,105 |
87,885 |
29.2% |
| $100,000 or less |
293,188 |
257,851 |
13.7% |
This totals 1,384,563 individuals audited in 2007, up from 1,296,681 in 2006, an increase of 7% overall.
The IRS focused it’s business audits on mid-market corporations with assets between $10 million and $50 million. Audits in 2007 compared to 2006:
|
Business type
|
Audits in 2007 |
Audits in 2006 |
Percent increase |
| S Corporations |
17,681 |
13,984 |
26 |
| Partnerships |
12,195 |
9,777 |
25 |
Large corporation audits dipped slightly in 2007 to 9,644, although this is up 14% from 2002. This totals 59,516 businesses audited in 2007, up from 52,223 in 2006, and increase of almost 14% overall.
Source: WebCPA 1/18/2007 edition