Chance of an IRS audit way down, but keep approach on up and up

WASHINGTON the vice tax because sands agents finances a green “I returns Internal is always fewer auditing to light the — in look don’t tell to IRS years, Revenue enforcement — Just cheat. the into clients has take because and fewest thou- your it Ser- just as to understand between tax bone, Cornerstone know Ten evasion,” years.” what managing tax the the avoidance Wealth. said difference difference partner Jeff “You Car- and is? at

everything decade the better, The I don’t fast-and-loose but IRS ago. cheat, it compared has That shouldn’t. a so might lot crowd I am less with make feel not of a worried. catch words character, the of my no-goodniks Boris I want favorite Badenov) the cartoon IRS (in who the to do folks if to they come cheat, have don’t. from because to (The pay somewhere.) more money the honest taxes has

vidual for This about income is important 48 percent taxes stuff. of account the Indi- federal fiscal trillion, government’s year according 2017 — revenue to about the Joint $1.6 for Committee the highest on percentage Taxation. of That’s federal ing to receipts the committee. in years, accord-

ber I asked of revenue the IRS: officers If the num- has gone down, why is the amount of revenue collected up?

“Not all of the revenue attributed to collection is the direct result of the efforts of revenue in nue work also tion notices generated payers. site ple an who makes not programs from email. of that revenue only officers,” Also, owe automated and it are “Collection comes easier back and the mailed automatically officers, the collection IRS from taxes for IRS collec- to web- reve- peo- said tax- but the to pay payment about was ago, in The 2010 them living down $1 IRS to billion plans. over on $11.2 today from nearly time billion $12.1 less is living through 10 than billion years now, on it according released pays whose by one-third for numbers by a lot to the from recent fewer have agency. 22,710 declined agents, figures That in 2010 trimmed, bers The to of agency 15,357 filers even today. have as has the grown. been numAmericans individual fiscal year that tax filed returns ended 150 million in in Sep- the tember, as grown, the number the the number most of returns ever. of audits Even has has 2010 dropped to 2017. 40 percent from What For one does thing, all it’s this less mean? likely the But IRS the is richer going to you chase are, you. the more is looking likely over it is your that shoulder. the IRS That’s not surprising, because wealthy people generally have more investment assets and stuff like second homes, cars, boats, jets and family businesses. “The wealthy have complicated tax situations,” said Jason Fleetwood, an accoun- tant and partner at CohnRez- nick’s office. cantly have audited ered in audited than ago, But additional and a are they Tysons “Those the higher more are because more they odds were more would Corner, who chance tax are likely of errors in a revenue.” getting earn not few your expect Virginia, to of getting uncov- signifi- years being bring favor bet- to ter of a audited better their 1-in-25 Taxpayers more and chances odds better than these chance than $1 with were every days. million 2011, of incomes 1 year. in getting That’s when 8. have income the $200,000 The For IRS example, further will ladder, come or the more, if down snooping. less you likely your earn t he are chances better odds Individuals, 1 were in than 80. of 1 getting Those in 2011, all 25. totaled, when odds audited had the are less of down Accountants being than from audited. a 1 1-in-160 in said 90 That’s for the chance 2011. audits way are sense “There down, the IRS may but is not still you be watching. as get many the actual seem addressing to IRS be audits, specific more but issues, prevalent notices such as deduction proof of or mortgage charitable interest contributions,” He said his individual Fleetwood clients said. and ing more business communications clients are seefrom state revenue agencies as they look for money wherever they can get it. Fleetwood has some simple advice: “Be accurate; document your deductions and record your income.”