Greetings!
Two recent IRS releases provide an excellent illustration of two of their primary functions: education and enforcement. |
Education The IRS released a fact sheet highlighting several 2011 tax law changes and challenges:
- Two Extra Days to File and Pay
- Tax Benefits Extended
- Limited Nonbusiness Energy Property Credit Available in 2011
- Repayment of First-Time Homebuyer Credit
- New Way to Report Capital Gains and Losses
- Reporting Roth Conversions
- Standard Mileage Rates Up in 2011
- AMT Exemption Increased
- Health Insurance Deduction for Self-Employed People
- Change for HSAs and MSAs
- New Form for Reporting Foreign Financial Assets
For the complete text, here's the link: FS-2012-01.
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Enforcement
The IRS released a report labeled "FISCAL YEAR 2011 ENFORCEMENT AND SERVICE RESULTS", which revealed a 34% increase in the number of face-to-face audits of taxpayers reporting income above $200,000, from 58,521 to 78,392. Overall, including so-called correspondence audits, the IRS audited nearly 4% of taxpayers in this income category.
For taxpayers reporting income above $ 1 million the audits increased to 20,475 from 16,509. Over 12.5% of taxpayers in this category were audited.
For taxpayers with income under $200,000, face-to-face audits increased to 313,229 from 284,241, and overall 1.02% of taxpayers in this category were audited, down from 1.04% the previous year. This was the only category that showed a percentage decline in the overall number of audits.
To see the complete report click on the following link:
FY 2011 IRS Enforcement and Service Results. |
