Is the IRS targeting you?
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If you make more than $1 million, watch out. Seems like the IRS is targeting wealthy taxpayers. 8.4% of taxpayers making more than $1 million were audited last year, compared to 1.1% of the general population. For those with more than $10 million, the audit rate was %18.4.
Barron’s recently posted an article online called “How the IRS Is Probing the Rich.” “…Folks with fat bank accounts, pricey properties, big incomes, large investments and complex tax profiles” should be on the lookout. The federal government is trying to recoup some of the billions in taxes that is estimated due, but not collected.
The new “wealth unit” may have you in their sights. Red flags:
- property transfers
- certain investment losses
- home-loan interest deductions
- foreign income
- big spenders
The IRS is getting a nice return on their investment. The IRS estimates that for every dollar they spend on enforcement, they bring in as much as $10.
This article is definitely worth browsing, especially if you fall into the category of “rich.”
Scott Berger, CPA, is a Entrepreneurial Services Principal at Kaufman Rossin, one of the Top 100 CPA and advisory firms in the U.S.
