IRS cuts back on audits of large firms

[JohnWxy]

Source: USA Today



The IRS audit rate for the nation's large corporations last year dropped to 26%, down from a high of 72% in 1990 and the lowest level in two decades, a new analysis of the tax agency's data found.
Additionally, the time the IRS spent on each large corporation also dropped by 20% over the last five years, according to the analysis by the Transactional Records Access Clearinghouse, a data research organization at Syracuse University.

The analysis also showed a 33% decrease since 2002 in the number of in-depth examinations the IRS conducts on large firms with assets of $250 million or more.

The declines occurred as the IRS increased audit rates of small and midsize corporations, raising the overall number of corporate audits. That strategy shift came with a potential financial cost, the analysis said, because audits of the smaller firms produce recommendations for additional taxes as low as $474 per audit hour, compared with $7,498 per audit hour for the largest companies.



Read more: http://www.usatoday.com/money/perfi/taxes/2008-04-13-irs-audit-companies_N.htm?loc=interstitialskip

[Blue_In_AK]

1. Oh, good, they'll probably be coming after me...

I have TWO little businesses, of which I am the only employee of both. I guess I'll be a prime target.

[kestrel91316]

4. They went after me for three separate years.

Almost a total waste of their time. They definitely didn't get any $800 per audit hour out of me.......

[L0oniX]

2. Yea ...they will go after those that can't afford a lawyer.

[napi21]

3. Shrub logic AGAIN! Why would you go after the low hanging fruit

when you can use a LOT MORE employees to spend a lot more money to collect LESS?

[kestrel91316]

5. The whole point is to monkeywrench the entire government.

The goal is DESTRUCTION of our government so they can replace it with a totally "privatized" corporate fascist state.

I call it treason.