The number of IRS audits has dropped to the lowest level since 2002. But even as the IRS audits fewer taxpayers, it still pays to consult with Wilton Manors accountants from Sterling Accounting.
According to the Wall Street Journal, the IRS audited about one in 160 individual tax returns in 2017. The agency has lost nearly a third of its employees since 2010, when it audited one in 90 returns.
According to the Journal:
The audit rate declined the most for high-income households, although they were still audited at a higher rate than filers of other income levels.
In 2017, the IRS audited 4.37% of returns with income of $1 million and higher, less than half the 9.55% audit rate for such returns in 2015. It marked the lowest rate of audits for that income group since 2004, when the data were first released. In late 2015, the Treasury inspector general said that high earners should be an enforcement priority for the IRS.
The audit rate for other income groups also declined, but not as much. For taxpayers earning less than $200,000, the percentage of returns audited dropped to 0.59% in 2017 from 0.76% in 2015.
Sterling Accounting’s Wilton Manors accountants are here to help you with any tax needs.
We provide innovative solutions for tax issues to minimize your tax liability, we find deductions commonly overlooked, and we stay up-to-date and well informed on all tax laws and legislation. It’s good to also remember that tax season comes around once every year, so good planning throughout the year is important to mitigating your tax exposure, allowing you to keep ore of what you earn! It’s a delicate balance that exists between optimizing your after-tax income and minimizing your pre-tax dollars.
That good planning can also help you either avoid audits or getting through audits in good shape. We’re also experts in tax matters for small, medium and large businesses of all kinds.