16 April 2007

NYT: I.R.S. Audits Middle Class More Often, More Quickly...

Well, duhhh...
Middle-class Americans, listen up: the I.R.S. is much more likely to audit you this year. Those caught cheating can expect to pay about $4,100 more on average in income taxes.

Since 2000, authorities at the Internal Revenue Service have nearly tripled audits of tax returns filed by people making $25,000 to $100,000 as part of a broad change in audit strategy.

Audits of these middle-class taxpayers rose to nearly 436,000 last year, up from about 147,000 returns in 2000. For these 61 million individuals and married couples, who make up nearly half of all taxpayers, the odds of being audited rose from 1 in 377 to 1 in 140.
You don't expect George W is going to do any inverstigating of anyone who gave his campaign large support or friends who made lots of money or corporations to whom he gave large tax deductions, do you?

and what's the administration's excuse, err... reason?
Kevin Brown, the I.R.S. deputy commissioner for services and enforcement, said the audits “were out of whack” in 2000, with far too little attention paid to the middle class and to the very highest income generators, those making $1 million or more. “We try to run a balanced audit program,” Mr. Brown said.

But even with the stepped-up scrutiny of middle-income taxpayers, they still are less likely to be audited than those earning more — and those earning less.

For taxpayers with incomes above $100,000 the odds of being audited in 2006 were 1 in 59; above $1 million, the odds increased to 1 in 16. People in lower income brackets — those reporting incomes below $25,000 — faced a 1 in 94 chance of being audited.

uh huh... Is that because there are so fewer people above the $1 million dollar level and people below or at the poverty level break the law more often or get caught more often?

just asking...

[related editorial from today's NYT: Cleaning Up the Alternative Tax: quote - The alternative tax should be reformed so that it does what it is supposed to do: make wealthy taxpayers with excessive tax shelters pay up.]

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