Albuquerque Journal (Albuquerque, NM)

Auditing of high-income earners on rise.(Business Outlook)

Byline: Your Taxes James Hamill For the Journal

Q: I earned about $150,000 last year, and my accountant told me the IRS plans to audit more people in my income bracket.

Is this true, and if so, what can I do to reduce my risk of audit?

A. It's true that the IRS has increased the frequency of audits of taxpayers making more than $100,000 a year. There are likely several reasons for this, including a desire to target increasing use of abusive tax schemes, including use of offshore accounts in an attempt to evade U.S. taxes.

Moreover, audits targeted at abusive claims for the earned income tax credit led to newspaper accounts of audit rates for low-income taxpayers that were higher than those for high-income taxpayers. …

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