Millionaires beware: The IRS is becoming more interested in you. If you’re pulling in less than $200,000, there’s not much to worry about.
The Internal Revenue Service said this week in an enforcement report that it audited 12.5% of wealthy taxpayers in fiscal 2011, up from 8% in 2010 and 6% in 2009. About 4% of those earning $200,000 and up were audited, up from 3% the year before.
But for the last five years, the agency has mostly left returns showing less than $200,000 in income alone, with around 1% facing audits.
Same goes for companies. Businesses with $250 million in assets have a 27.6% audit rate compared to 1% of firms with less than $10 million in assets.