Its is no surprise that in today's economy people look for ways to avoid paying taxes and retaining as much profit as possible. Therefore, the IRS in the past 3 years has enforced audits for citizen earning over $200,000.00, each year becoming progressively more intense.
Personally, I'm glad the IRS is becoming more enforceable, however there's too little being done and a bit too late. My opinion will be shown in the following numbers. Starting with only 12.5% of all US citizens earning over $1million were audited leaving 87.5% of the nations millionaires un-audited and free of any crimes if committed. This world and horrible economy became this way in the previous years due to crimes in politics, banks and different types of lenders within the financial industry. Therefore, why wouldn't more millionaires be audited? Why wouldn't the IRS crack down harder on these millionaires, regardless of what they do? Anyhow, since 2009 the enforcement rate has increased by 2%, which is a great sign. As stated by the IRS, their main focus is on millionaire with large off shore accounts, which are more difficult to audit however, if crimes were committed, then the IRS will find it. This being said, the IRS gave those millionaires and citizens earning over $200,000.00 the opportunity and incentive to confess if any illegal profit was made free of jail time and reduced penalty fees. In addition, those who earn $200k and more also saw an increase in audits conducted by the IRS. For example, in 2010 1 in 32 citizens earning over $200k were audited, however in 2011 1 in 25 of those citizens were audited. As for the rest of the taxpayers earning under $200k, their chances of getting audited are not as high as higher earning citizens. The IRS claims to have only audited 1 in 98 of those citizens. 2010's end report of audits show that a total of $1.6 million of returns were audited, which in my opinion, I feel like that is way to little and the IRS could be doing a more effective job at cracking down these money criminals and possibly recover this damaged economy that we are currently in.
http://money.cnn.com/2012/01/05/pf/taxes/irs_audit/index.htm?iid=HP_LN
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