IRS keeps cutting back on audits of millionaires and big businesses
Syracuse, N.Y. — The Internal Revenue Service is subjecting a relatively small percentage of wealthy taxpayers to tax audits, and less than half of the biggest corporations in the U.S. are now being audited, according to a new report. The report, from Syracuse University’s Transactional Records Access Clearinghouse, found that 97 out of every 100 individual taxpayers who reported over $1 million in income weren’t audited last year, based on IRS statistics. In fiscal year 2010, such audits turned up $5.1 billion in unreported taxes. Now with just half the audits, the government uncovered only $1.9 billion in unreported taxes in fiscal 2018. TRAC’s research also found that more than half of the 633 largest corporations in the country, those with over $20 billion in assets, weren’t audited last year. This is the first year the audit rate has slipped below 50 percent, TRAC noted. As recently as 2010, 96 percent of such returns were being examined by the IRS.