A new analysis of Internal Revenue Service data shows that the IRS is more likely to go after high-wage earners than lower income taxpayers. The data revealed that taxpayers who have taxable incomes in excess of $1 million were almost 12 times more likely to have a tax audit conducted on them, compared to other taxpayers. Out of the high-wage earners who were audited, approximately one-eighth of them were examined by the IRS in 2012 fiscal year, resulting in 41,000 examinations. While approximately 25 percent of these tax returns did not result in any change in the taxes that needed to be paid, the vast majority of the returns resulted in a change. Some audits resulted in finding that more taxes were owed. On average, the amount of additional taxes per return was $117,000, totaling about $4.8 billion overall.
Very few things are able to strike fear in the hearts of American taxpayers as much as a notice from the IRS that they are being audited.
With the New Year just around the corner families in Massachusetts come together to celebrate the close of 2011 with those who are closest to them. They gather around the Christmas tree and share stories, exchange gifts and enjoy one another's company. Nothing puts a damper on the holidays more than a notice from the IRS about a tax audit or a claim that you still owe money from last year.
The accusation of a tax crime requires a strong defense in Massachusetts. The first inkling of a potential problem may come with a demand for a formal tax audit, whether at the state or federal level. Other indications of trouble are when an individual may be made aware that he or she has become the subject of a tax crimes investigation.
There is an old adage that states, "The only things certain in life are death and taxes." Needless to say, it's not uncommon for the men and women of America to be dissatisfied about the portion of their paycheck that is appropriated by Uncle Sam.