Total audits fell by 5 percent from 2012 to reach the lowest level
since 2008 as the IRS said it coped with budget cuts.
For the fiscal year that ended September 30, 2013, the IRS said it
audited 24.2 percent of individual tax returns with adjusted gross
income of $10 million or more. That was down from 27 percent in 2012
and 30 percent in 2011.
There were also fewer individual tax returns audited in the $5
million to $10 million gross income band, the IRS said.
In total, the IRS audited about 1.4 million individual returns. IRS
Commissioner John Koskinen said in a statement that budget cuts at
the agency have "presented challenges."
Wealthy Americans historically are the likeliest to be audited. The
IRS a few years ago started a "Global High Wealth Industry Group" to
audit high-wealth individuals more efficiently.
But Congress in January cut the IRS's fiscal 2014 budget by about 4
percent to $11.3 billion.
The funding cuts have forced the IRS to cut the number of customer
service representatives it employs during tax season, Colleen
Kelley, president of the National Treasury Employees Union said in a
statement. "Both taxpayers and employees are frustrated."
[to top of second column]
Last year, audits were done on 6 percent of individual tax returns
reporting no gross income, up from 2.7 percent in 2012 and 3.4
percent in 2011.
(Reporting by Patrick Temple-West; editing by Leslie Adler)
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