The U.S. Internal Revenue Service has announced that it has audited 12.48 percent of individual tax returns with income exceeding $1 million during fiscal 2011, as reported by Bloomberg.
This means that about one in every eight millionaires got an audit this year - which is an increase - as in fiscal 2010, the IRS audited only 8.36 percent of millionaires. This is the third consecutive year that the IRS increased its audit rate on returns showing income of more than $1 million. By this process, the IRS wants to demonstrate the fair manner in which tax laws are put in place.
The audit rate also climbed for corporations with more than $250 million in assets. The IRS said it audited 27.6 percent of these businesses, up from 25.3 percent in fiscal 2010. The data has been divided into three categories, namely, less than $200,000; between $200,000 and $1 million; $1 million and higher.
According to Associated Press, the IRS audited nearly 1.6 million of the 141 million individual income tax returns that were filed. The IRS release also includes information about electronic filing of returns and taxpayer service. The percentage of e-filed returns rose to 77 percent in 2011, compared with 69 percent in 2010.