Accounting and Tax Services
May 22

Could you face an IRS audit in 2008?

Well your chances certainly have increased.  The payoff for the IRS?  $59.2 billion in enforcement revenue, compared to $48.7 billion in 2006 and $34.1 billion in 2002.  The IRS filed 3.8 million levies and almost 700,000 liens during 2007, an increase from 2006.

Individuals audited in 2007 compared to 2006:

Income level

Audits in 2007

Audits in 2006

Percent increase

$1 million or more

31,382

17,015

84% (1 of every 11)

$200,000 or more

113,105

87,885

29.2%

$100,000 or less

293,188

257,851

13.7%

This totals 1,384,563 individuals audited in 2007, up from 1,296,681 in 2006, an increase of 7% overall.   

The IRS focused it’s business audits on mid-market corporations with assets between $10 million and $50 million.  Audits in 2007 compared to 2006:

Business type 

Audits in 2007

Audits in 2006

Percent increase

S Corporations

17,681

13,984

26

Partnerships

12,195

9,777

25

Large corporation audits dipped slightly in 2007 to 9,644, although this is up 14% from 2002.  This totals 59,516 businesses audited in 2007, up from 52,223 in 2006, and increase of almost 14% overall.

Source: WebCPA

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →