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How Likely Are You To Be Audited? > NetSparsh - Viral Content you Love & Share

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.

In The News:

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CBS News

Trump files 2017 taxes following 6-month extension
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Trump submits 2017 federal income tax returnsThe Hill

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USA TODAY

Year-end planning: Here are 5 tax, investment, job and debt questions you need to ponder
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The last couple months of the year are a good time to think about money – and make various tax, investment and other personal-financial moves. Here are five questions to ask yourself as 2018 starts to wind down. 1. Should you do year-end tax planning?


U.S. News & World Report

Study: Residents With Lower Incomes Pay a Higher Effective Tax Rate
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The 50-state analysis by the nonpartisan Institute on Taxation and Economic Policy found that the lower one's income, the higher the effective overall state and local tax rate. The study includes sales taxes, excise taxes, user fees and income taxes ...
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Vox

Republicans were supposed to run on their tax cuts. Instead, they're running away from them.
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While most of the attention on Congress was focused on then-Supreme Court nominee Judge Brett Kavanaugh in late September, House Republicans quietly passed yet another round of tax cuts, sending the bill to the Senate, which appears to have no ...
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Treasury.gov -Fox Business -Committee for a Responsible Federal Budget -PolitiFact
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Forbes

6 Whopping Tax Mistakes That Can Ruin Your Retirement
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Sadly, tax planning doesn't end when you retire. The Internal Revenue Service (IRS) still wants its share of your retirement earnings. While many live on less in retirement, others may end up spending more. That could lead to higher tax bills ...
3 legit ways to shield your kids from tax burdensYahoo Finance

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KHON2

City council takes one step closer to dipping into property taxes for rail
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HONOLULU (KHON2) - A proposal that allows the city to use property taxes to pay for the rail project moved forward today at city council and is one step closer to becoming reality. At stake is $44 million that the federal government wants the city to ...

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Recode

Recode Daily: The hot new thing among the mega wealthy: Avoiding taxes by doing good
Recode
The new hot thing in the land of the mega wealthy: Do-gooder investments they can write off on their taxes. Expect big boasts from Silicon Valley titans next year about how their money is changing the world, thanks to a little-known part of the tax ...


Letter: Don't vote for higher property taxes
Concord Monitor
Pembroke and Chichester residents need to be aware of possible increases in their property taxes depending on how they vote in November. The Republican candidates support school vouchers, which would require all of us to pay for parents to send their ...


The Hill

Carbon taxes are finally poised to become a reality
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ExxonMobil's announcement last week that it would contribute $1 million to Americans for Carbon Dividends puts it officially behind a lobbying campaign for a carbon tax in the United States. Conservatives and environmentalists will both greet this with ...

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Forbes

Is The NYT's Article Alleging Trump Tax Fraud Fake News?
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“Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.” – Judge Learned Hand, Helvering v ...

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