Audit rates are going up
Michael Nickerson and his dog Hunter
Michael Nickerson and his dog Hunter
AUDIT RATES ARE GOING UP
Bank robber Willie Sutton, asked why he robbed banks, explained, "That's where the money is." The Internal Revenue Service knows where the money is, too. That's why tax audit rates are going up, especially for the super-wealthy.
Audit rates for all returns averaged only 1.11 percent for the last few years, and people with incomes under $ 50,000 have had only a 0.73 percent chance of being audited for the last few years. But the rates are up markedly now for those with higher incomes.
For instance, those with incomes between $500,000 and $1 million, audited at a 2.77 percent rate in fiscal year 2009, faced a 5.38 percent likelihood in 2001. For incomes between $1 million and $5 million, there's an 11.80 percent audit rate. From $5 million to $10 million, there's a 20.75 percent chance of being audited. Over $10 million, the audit rate balloons to 29.93 percent.
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