Press Release Summary = Discover how you can legally escape unecessary taxes and pay less to the Federal Government.
Press Release Body = Tax Tips-Things You Need to Know
IRS Audit The holidays have come and gone, and we hope you had a wonderful holiday season. During Christmas, it is said about Santa Claus \"he knows when you are sleeping and he knows when you are awake, so be good for goodness sake.\" Santa knows, but the IRS suspects. And, oh boy, do they suspect. And when they suspect, they audit. As we get into the 2006 tax return preparation season, be careful. The IRS audit rates are up.
The IRS Is Coming To Town
Commissioner Mark Everson released the following information about the current audit activity.
o \"The individual enforcement categories bear out the significance of our invigorated enforcement efforts. And all these numbers are for fiscal year 2006 that ended September 30. Total individual returns audited increased by over 6% to 1,293,681 in 2006 from 1,215,000 in 2005. That\'s the highest number since 1998. Some people have dismissed our audit increases because of our use of correspondence, or letter exams.
An important part of our enforcement effort has targeted high-income taxpayers. We\'ve put a lot of emphasis in increasing audits in this area because it\'s critical to ensuring faith in the tax system. If you earn more than $100,000 or you\'re a millionaire, you\'re a lot more likely to be audited these days than just a few years ago.
o Audits of individuals with income of $1,000,000 and higher increased to 17,015 from 12,835, a nearly 33% increase in just one year. About 1 in every 16 of these taxpayers faced audits last year. If you\'re earning that kind of money, and we notice a problem, you\'re going to hear from us.
Let\'s turn to businesses. We saw an increase in our efforts to review S corporations and partnerships, while our other activity involving small business and large corporations, remained relatively stable. Our business numbers reflect that we have placed more emphasis in the growing area of these flow-through returns involving S corporations and partnerships:
o Audits of S corporation returns increased to 13,984 from 10,417, a 34% increase. This is the highest level since 2000.
o Audits of small businesses organized as corporations remained about the same. 17,871 audits were completed in 2006, up slightly from 17,858 in 2005. Both of these figures are more than double the 7,294 audits of small businesses in 2004.\"
You better watch out!
So what do these figures mean for you? It means that you ought to carefully gather your financial records and work very hard to organize your data, perhaps with the assistance of an organizer document.
Please contact Al Isensee at 954-440-3766 or http://www.alisensee.com taxman2go@gmail.com
2022
