IRS Drastically Increases Its Audits Of America's Richest Taxpayers
In 2009, the Internal Revenue Service announced plans to unleash a new enforcement unit called the Global High Wealth Industry, the goal being to better investigate the complex finances of America's wealthiest taxpayers.
They weren't kidding.
Recently released IRS statistics indicate that the federal government increased their audits of America's richest taxpayers -- those with incomes above $10 million -- by 75 percent last year. Nearly one in five -- 18.5 percent -- of America's richest households dealt with an audit. In 2009, the Global High Wealth Industry's first year of operation, the IRS audited only one in ten of America's richest taxpayers.
Complex tax evasion has become an increasing problem in recent years, with popular strategies including conversion of income into capital gains and stashing cash in Swiss banks.
Audit rates also increased among some lower income brackets, but none so much. The second highest audit increase was among the second highest income bracket: those reporting incomes of $5M-$10M. They saw a 55 percent increase in their audit rate, totaling 11.6 percent. High, but much smaller than the increase experienced by the $10M-plus bracket.
It only makes sense if it applies to others. That is called tax breaks. Everyone who files taxes considers all deductions that they can. There are tax breaks that the envious, want the Rich to Pay More Taxes, folks are trying to attack.
Nice try LJ!!!! Spread the Wealth, take from others. Sooner or later you will run out of others to support the entitlement, give-away system and you will force exactly what is posted about in London, saw in Greece, Ireland. How long do you picture it to last until it happens here?
No, it only makes sense if you cheat on your taxes. If you don't cheat, you have nothing to worry about. If you have legitimate deductions, there's also nothing to worry about. You only get caught in an audit if you're cheating... In which case, I hope the penalties and interest (on top of the taxes) are substantial....
