Ask Our Financial Advisors About A Random IRS Audit Plan

The IRS plans to conduct random audits of 2,500 returns from 2010 filed by corporations with less than $250,000 in assets. The results will be used to update the IRS formulas for selecting returns for audit.

The IRS is also trying to improve tax compliance among sole proprietors. According to a Treasury report, sole proprietors accounted for 20% of the $345 billion tax gap calculated for 2001.

IRS Releases Audit Stats for FY 2011 (2011 Enforcement Results)
FY 2011 audit statistics show IRS increased interest in upper income taxpayers. Taxpayers with income below $200,000 continue to have a low audit percentage.
Examination- Individual Return Closures and Coverage
	FY 2009	FY 2010	FY 2011
Income under $200,000	.96%	1.04%	1.02%
Income $200,000 and higher	2.89%	3.10%	3.93%
Income $1 million and higher	6.42%	8.36%	12.48%

Do you have to repay the "First-Time-Homebuyer Credit"?
The IRS has a new tool available on its website to assist taxpayers who will have to repay First-Time Homebuyer Credit. The reminder letters will no longer be mailed to taxpayers who have to repay the credit. However, the online lookup tool found on the IRS website can be used to check repayment obligations. The Tax Tip can be viewed on the IRS website at irs.gov/newsroom. The look-up tool can be accessed at www.irs.gov/individuals .