Audit Facts: Individuals

We often forget about the vast number of delinquent taxpayers wh undergo an audit examination. In this weeks post, I would to focus on audit facts for individuals along with some statistics that support the need to have audits.
Did you know that on a form 1040 (personal federal income tax) you will find that the IRS has 132 million individual tax returns filed each year? Of this number, almost 1.3 million consist of audits ; this being about 1% of the 1.3. Though 1.67 % are for those making more than 100k a year, and .89% for those making less than $100 K a year. Out of this number 77% of these audit were correspondence audits, and of the 77% , 23% were face to face audits. I don't think that those owing back taxes realize that audits result in an average of 58% increase in tax due. Being under audit examination sends a reg flag to the IRS to monitor your every return to ensure that nothing was filed incorecctly or that you are hiding what the IRS liked to call "dissipated assets".