Fewer Large Corporations Audited by IRS

[Newsjock]

Source: Associated Press

WASHINGTON (AP) -- The tax audit rates of the largest companies are less than half what they were 20 years ago while more small and mid-size businesses are coming under scrutiny, according to an organization that monitors the Internal Revenue Service.

The Syracuse University-based Transactional Records Access Clearinghouse described what it said was a "historic collapse" in audits for corporations holding assets of $250 million or more. About 26 percent of them were audited in the 2007 budget year compared with 34 percent in 2006 and 43 percent in 2005.

The IRS did not dispute the numbers, based on agency data. But it strongly disagreed with suggestions it was easing oversight of the biggest corporations.

... Shott said the focus in recent years has been on tax shelters and `extraordinarily complicated" partnerships and S corporations where shareholders, rather than the company, must report income or losses. Last year the IRS examined 17,700 S corporations, compared with 14,000 the previous year, and 12,200 partnerships, compared with 9,800.

Read more: http://biz.yahoo.com/ap/080414/irs_audits.html

[pattmarty]

1. Nooooooooooooo, I can't believe that. They didn't mention......

.....that on Fox "news".

[PSPS]

2. This is old news, really.

It came to light years ago that, with bush's crony at the helm, the IRS gutted the staff devoted to auditing large companies. These companies are usually led by bush 'pioneers.'

[defendandprotect]

3. Yes . . . thanks to the Bushes ---

During Poppy Bush's administration, some may remember that he proposed sending the IRS out after the poor to raise more pocket money. The nation was so shocked that they withdrew that idea for the moment ... it came back and they're actually doing this now --- having the IRS chase the poor!!

But -- of course, they've made sure that the IRS stays away from the wealthy.

MEANWHILE ... ole Grim Reaper "Greenspan" responded to Bush's needs by INCREASING Social Security FICA payments so that there would be more SURPLUS for Poppy to draw on --- !!!
This was done in the middle of the night in Congress.

Keep in mind Poppy's Gulf War I was "off budget."
Total $45 billion --- $9 billion of that paid by Japan.

[ShockediSay]

4. Ron Paul, my favorite Republican, would cite this

as further evidence of creeping fascism.

[jasmine621]

5. For many, growth in democracy means less authority for government.

Less AUTHORITY for government but much more government involvement in subsidies to corporations. It's a kind of paradox. We really want more government activity on our behalf but much less government enforcement of laws and much less government authority to regulate. It's ass backwards to me. If we want the free market and laws to work FOR the people and not AGAINST us, we should want MORE not less government authority to enforce the laws and regulate universal public resources like energy, water, food safety, medicine, etc.

[MaineYooper]

6. ...and in other news, large corporations give larger campaign donations...

than small corporations. Studies are under way to see if there is a causal connection.

More at 11.

[happyslug]

7. Reagan broke up the Audit Teams, so the IRS could no longer Audit large firms

Prior to Reagan, the IRS had special Audit teams who so purpose were to go after large corporations. Under Reagan's "Reform" of the IRS these teams were dismantled when he cut the IRS budget by a third. This changed Killed the ability of the IRS to audit large firms. In the 1990s the GOP controlled Congress did increase the Audit Budget of the IRS, but restricted the money to Audits to people who applied for the Earned Income Credit. In fact the GOP controlled Congress demanded the IRS Spend more money on Earned Income Credit Audits then was the increase in the IRS Audit Budget (Taken further money from regular auditing while the GOP could say they increased the money for Audits).

Yes, this is true, but it was the INTENTION OF REAGAN AND THE 1994-2006 GOP Controlled Congress.