IRS Increased Number of Return Audits

The Associated Press reported the IRS increased the number of returns audited by nearly 11 percent this year, targeting wealthy taxpayers, big businesses, charities and tax-exempt organizations.

More than 1.58 million individual returns were examined for the budget year that ended in September, up from 1.43 million last year.

Overall, one percent of individual returns were audited, by mail or in person, and 8 percent of returns with incomes above $1 million were reviewed. Out of the nearly 143 million returns filed by tax payers 389,000 reported incomes of $1 million or above.

Corporate audits dropped by less than one percent, but there was an increase in the number of audits of firms with $10 million or more in assets.