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Omaha Steve

(99,760 posts)
Tue Feb 24, 2015, 05:16 AM Feb 2015

IRS audit rate for individuals drops

Source: USA Today

Kevin McCoy

Your chances of facing an IRS audit rate dropped to the lowest level in at least a decade in 2014 and are expected to fall further this year, according to new data USA TODAY obtained from the nation's tax agency.

The audit rate, the percentage of individuals' tax returns IRS revenue agents examined either in person or via correspondence, fell to 0.86% last year, the data show. That represents the lowest rate since at least fiscal year 2005.

After rising steadily from 2005-10, the number of IRS audits for individual taxpayers fell 21.4% during the succeeding five years, the data show.

The IRS audited slightly more than 1.2 million individuals last year, down more than 162,000 from 2013, and a drop of nearly 339,000 from 2010.

FULL story at link.



A taxpayer mails a return to the IRS.
(Photo: 2008 photo by Paul Sakuma, AP)

Read more: http://www.usatoday.com/story/money/2015/02/24/irs-audit-rate-drops/23876109/

11 replies = new reply since forum marked as read
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IRS audit rate for individuals drops (Original Post) Omaha Steve Feb 2015 OP
Why not just say paying the IRS what you owe is purely voluntary? merrily Feb 2015 #1
I think anyone that claims LittleGirl Feb 2015 #2
Then you'd have people who really make 1M/year report income of 40K strategery blunder Feb 2015 #3
I said income LittleGirl Feb 2015 #5
Most people who make 500k are self employed . .. pipoman Feb 2015 #7
Truth be told the IRS should simply do your taxes and send you a refund/bill strategery blunder Feb 2015 #9
You're the only one LittleGirl Feb 2015 #11
.... pipoman Feb 2015 #4
see my response above eom LittleGirl Feb 2015 #6
Not hard to figure that one out.... Cryptoad Feb 2015 #8
With everything computerized, there's less reason to audit than there used to be. Xithras Feb 2015 #10

LittleGirl

(8,291 posts)
2. I think anyone that claims
Tue Feb 24, 2015, 05:50 AM
Feb 2015

to make over 500k income should be audited every year. Every freaking year.
Anyone that claims to make 50k income a year or less should be tax exempt.

strategery blunder

(4,225 posts)
3. Then you'd have people who really make 1M/year report income of 40K
Tue Feb 24, 2015, 06:20 AM
Feb 2015

to escape audits and taxes.

Audits are a necessary evil, from the wealthy on down. It's way too easy for the wealthy to shelter income from taxes as it is; your proposal would make it even easier. The Greeks have had major, major issues with this kind of tax evasion (their wounds are not entirely self-inflicted, but their taxation/tax collection issues have certainly hindered their ability to recover without completely cannibalizing the base of their economy).

Sadly even the poor must be audited sometimes; otherwise you will have people who are really wealthy claiming to be poor. The issue comes when the least of society are audited so much that the IRS spends more to audit than it recovers in funds from tax cheats, or when the IRS audits those least able to afford legal counsel, while looking the other way while people like Rmoney hide million$ offshore. I certainly don't advocate oppressive taxation (and people who really don't have the means to defend themselves in tax court should truly be offered legal assistance similar to what public defenders are supposed to do), but the possibility of an audit should always be there, for anyone who is obligated to file taxes. If a certain category of taxpayer is exempt, non-exempt taxpayers will lie, steal and cheat their way into the exempt category, by hook or by crook.

LittleGirl

(8,291 posts)
5. I said income
Tue Feb 24, 2015, 06:50 AM
Feb 2015

which is reported from your employer right? That's what I meant. Reported by your employer.
Where are the check and balances for those that file? Through the audits. We have it all backwards in this country. The employer should report your income, not individuals.

strategery blunder

(4,225 posts)
9. Truth be told the IRS should simply do your taxes and send you a refund/bill
Tue Feb 24, 2015, 01:58 PM
Feb 2015

and if you have allowable deductions and/or your income changed, you would have the option to file an amended return. That's the way most countries do it. Employers already report that kind of information, so the IRS already has what it needs to do a W-2 tax return for the vast majority of Americans.

However, the same wealthy tax cheats that would abuse the shit out of a no-audit loophole are also the same wealthy tax cheats who have income from sources that are...less likely to be automatically reported to the IRS. Hence why they need to be audited, and the threat of an audit needs to hover over every taxpayer (else the tax cheats will cheat their way into an audit-exempt income bracket).

Tax preparer lobbyists, however, is why we can't have a good thing: Every time this comes up in Congress, the army of H&R Block, Intuit, Jackson Hewitt, etc. lobbyists come out of the woodwork to bribe our esteemed politicians to not make their employers redundant.

Xithras

(16,191 posts)
10. With everything computerized, there's less reason to audit than there used to be.
Tue Feb 24, 2015, 02:25 PM
Feb 2015

A big part of the auditing process used to be ensuring that all of the numbers YOU reported actually matched what everyone else said they gave you, or what you say you gave away. Nowadays most of that is submitted or processed electronically, so these conflicts are caught without the need for an actual audit. A few years ago I actually received a small additional check from the IRS without even asking for it. Apparently I'd mistyped one of my income numbers and made a math error when I was doing my taxes. Their computers caught it, recalculated my taxes, and they sent me a check for the difference when they found that it worked to my favor. I'd never even HEARD of that sort of thing before.

From that perspective, you COULD say that 100% of individuals are audited.

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