According to the IRS, the overall revenue collected from tax audits increased year in FY 2013. The 2013 increase in revenue is in spite of the fact that tax examinations decreased.
The IRS budget has been on the decline since 2010. The decreased budget has been the catalyst for the IRS to focus on high income taxpayers. The IRS believes it can get more bang for the buck by going after high net worth taxpayers.
In 2011, the IRS created the Global High Wealth Industry Group (GHW). GHW is a group of agents that examine the returns of high net worth individuals and their related businesses and entities. The individuals audited have offshore economic activity.
The total number of audits in 2013 was 1,404,931 down from the prior year’s total of 1,481,966. The IRS reported that the number of correspondence examinations decreased by 5% from the 2012 fiscal year. A correspondence audit is an audit conducted through the mail and not in person with an IRS agent. It is a cheaper alternative for the IRS than a face to face, office audit. Despite the cheaper cost, the number of correspondence examinations conducted was the lowest since fiscal year 2006.
Tax audits of large corporations, those with assets of $250 million or more increased. This was the only audit area that had increased.
If you are being audited by the IRS, call the Law Offices of Todd S. Unger, Esq. today. Todd S. Unger, Esq. can help you manage the audit, appeal the audit, or advocate on your behalf in the US Tax Court or another forum to resolve the tax dispute. Audits can pose serious risk to your financial health. The Law Offices of Todd S. Unger, Esq. LLC is here to advocate on your behalf. Call the Law Offices of Todd S. Unger, Esq. LLC today (877) 544-4743.