The figures don’t lie. The number of IRS audits has fallen below 1% once again. This marks the lowest number since 2005, and it’s a cause for relief for those in all tax brackets. We’re going to take a closer look at what this means for you.
Why Did it Happen?
The main reason why audits fell to their lowest level in a decade is because of the cuts made to the IRS. They have a smaller workforce; therefore, they are less able to audit people.
Nevertheless, don’t assume that this gives you the chance to defraud the Federal government of a few dollars here and there. Audits haven’t simply decreased in number. They have become more targeted. They have become more inflexible, and the costs of doing something wrong are huge.
Targeting the Wealthy
One big change is the targeting of the wealthy. The IRS has been criticized by both President Barack Obama and the public for unnecessarily concentrating their efforts on the American middle classes. It meant their returns were low and the wealthy were frequently able to pay less tax.
Obama has demanded a change in the way the IRS operates, and this includes targeting the wealthy.
What Does it Mean for You?
You would be wrong for believing the average American taxpayer no longer has to worry about the potential for an IRS audit. This is not the case. The IRS still audits those from all sections of society.
Continue to be vigilant and continue to be accurate when it comes to your taxes. The IRS won’t hesitate to audit you!
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