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IRS gearing up for big increase.(Tax Audits)

Publication: USA Today (Magazine)

Publication Date: 01-APR-06
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COPYRIGHT 2006 Society for the Advancement of Education

The Internal Revenue Service plans to conduct about 1,000,000 audits this year, up 37% from 2001. The agency says it will target roughly 200,000 fliers earning over $100,000--nearly double that of four years ago.

Even if you are not that wealthy, the increasing number of self-employed individuals also may be part of the government's expanding tax dragnet.

There are three types of audits: Correspondence audits occur when the IRS sends a letter asking for clarification on relatively simple items. It usually is handled and completed through the mail. Office audits are conducted on the IRS's turf. You meet...

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