LCSN: What are your chances of being audited?

March 30, 2010. Retrieved online: March 30, 2010, from Larry Tunnell For the Sun-News, Las Cruces Sun-News

The 2009 IRS data book is out, and it can give you a hint about your chances of being audited. Of the individual tax returns filed in 2008, 1 percent were audited in 2009, the same as in the prior year. Of those examined, approximately 34 percent had an earned income tax credit (EITC) claim, an indication of the number of errors (both intentional and unintentional) that are made with those claims. For nonfarm businesses with $200,000 or more of gross receipts where the EITC wasn’t claimed, the audit rate was 3.2 percent. The audit rate for corporations was 1.3 percent, for large corporations it was 14.5 percent, for estate tax returns it was 9.3 percent, and for partnership returns it was 0.4 percent. Of all individual audits, 71 percent were merely correspondence examinations, and nearly 12 percent were accepted with no change.

Thirty-one percent of individual tax returns are now filed online. You can find the IRS data book, along with printable forms, instructions and publications, at http://www.irs.gov.

You might not have heard much about it, but on March 18 the Hiring Incentives to Restore Employment (HIRE) Act of 2010 was signed into law. The purpose of the HIRE Act is to encourage hiring and investment in business machinery and equipment. The main changes made in the HIRE Act are as follows.

Read the article.


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