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Taxes Information |
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How Likely Are You To Be Audited?
Statistics for Individuals Unfortunately, the IRS increased its rate of auditing individuals in 2003 when compared to 2002. The increase was approximately 14%, but still constituted only 6.5 audits for every 1,000 taxpayers. Put another way, the risk of being audited on your personal return is less than 1 in 100. In regard to the above numbers, it is important to note that the IRS pursued a large number of "correspondence audits" instead of face-to-face meetings. As the name suggests, these audits consists of correspondence being sent from the IRS to a taxpayer regarding a contested issue. The taxpayer can respond to the audit or pay the accessed amount depending upon the request of the IRS. Favorable Audit News For Businesses The audit rate for businesses is much lower than those for individuals. In 2002, the IRS audited roughly 2.2 out of every 1,000 businesses. In 2003, this rate dropped slightly to 2.1 out of every 1,000 businesses. The IRS has attributed the decline in business audits to the "explosive growth" in tax shelters, which requires the Agency to pursue more expensive and time consuming audits due to the complexities involved in the plans. The Agency reported pursuing more than 2,200 such shelters in 2003, which the audits taking an average of 7 1/2 months longer than normal corporate audits. Audit Risk Whether you are a business or individual taxpayer, your risk of being audited is very low. The nominal risk, however, is not a license to pursue frivolous deductible claims on your returns. As long as you stick to valid deductions, you should be able to sleep without much concern. Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
MORE RESOURCES: Those who oppose higher taxes and are fed up with record levels of U.S. debt may pine for Ronald Reagan, the patron saint of lower taxes and smaller government. WASHINGTON — Raising taxes on the wealthiest Americans, as President Barack Obama proposes to do, probably wouldn't wreck the moribund U.S. economy, but extending the tax cuts they've enjoyed since 2001 could spur some economic benefit. Taxes go downSeveral letters have complained about property tax increases. However, we are having the opposite experience: Our home's assessed value decreased by about 30 percent, and our taxes will come down almost 20 percent if no budget change is adopted, and 30 percent if the proposed change is adopted. School taxes go up for Palm Beach County residents despite cuts to budget The average area homeowner could pay $127 more in school taxes this year if the Oshkosh Board of Education raises local property taxes to the maximum allowed by the state the school board is expected to discuss its options tonight, but take no official action. DECATUR - Raising taxes is the only way out of the state budgetcrisis, and members of the General Assembly know it. ANALYSIS-Transaction taxes, liquidity and patience A combination of high foreclosures and rising property taxes put the squeeze on homeowners... and local governments. Contributor: David W. Thornton Published: Sep 07, 2010 Levying property taxes to affect housing prices is not the best option given other countries' experiences, according to a researcher from the People's Bank of China. LANCASTER -- The former home of a local hardware store will be on the auction block Friday, paving the way for government officials to collect $88,530 in back taxes. |
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