Statistics for Individuals
Unfortunately, the IRS increased the rate of the test persons in 2003, when compared with 2002. The increase is about 14%, but still constituted only 6.5 audits for every taxpayer 1000th In other words, the risk of audited on your personal return in less than 1 100.
With regard to the above numbers, it is important to note that the IRS a large number of "correspondence audits" rather than pursue face-to-face meetings. Asthe name implies, these tests of the correspondence is that sent by the IRS to a taxpayer in respect of a disputed question. The taxpayer can reply to the audit and payment of the amount to be called depending on what the IRS.
Favorable Audit news for businesses
The audit rate for businesses is much lower than those for individuals. In 2002, the IRS examined about 2.2 from 1000 companies. In 2003, this ratio fell slightly to 2.1 from each1,000 companies.
The IRS, the decline in business audits, attributed to the "explosive growth" in tax havens, which requires the agency to pursue more expensive and time consuming audits due to the complexity involved in the plans. The agency reports to track more than 2,200 such shelters in 2003, takes the tests, an average of 7 1 / 2 months longer than normal corporate audits.
Audit Risk
Whether you are a business or individual taxpayers, the risk ofbe examined is very low. The nominal risk, but is not a license to pursue frivolous deductible information about your return. As long as you keep the valid deductions, you should be able to sleep without much concern.
