IRS Audits Will Focus on High-Income, High Wealth
Taxpayers, SB/SE Official Says
The IRS's examination team will be focusing on high-income, high-wealth taxpayers, paying close attention to those with a tax liability that is significantly reduced through the use of multiple entities, an official said Sept. 15.
The IRS is paying attention to individuals with an income level that is not "huge," but has wealth and a lower tax liability because of flow throughs, trusts, and other similar entities, said Linda Franke, a senior level adviser with the Small Business/Self Employed Division, at an American Law Institute-American Bar Association tax controversy conference.
IRS will focus on individuals with an income of $250,000 or more and total positive income of at least $1 million, she said. This process will mostly be done corporately with field offices doing the examinations, supplemented by office examinations, Franke said.
IRS also is interested in bringing non filers into compliance, so it will pay close attention to taxpayers with multiple years of non filing.
(Vol. 30, No. 38) 2011 Tax Management Inc., a subsidiary of the Bureau of National Affairs, Inc.
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