Millionaires beware: More IRS audits for you

All you millionaires reading WalletPop are now put on notice: You're far more likely than me to be audited by the Internal Revenue Service. Who knew? Well, truthfully, we all probably expected that the IRS audited the wealthy much more often. It just makes sense... the more money there is to audit, the more money there is to squeeze out of the taxpayer. And the IRS has never been about collecting less money from us, the last time I checked.

So the IRS is offering up these odds of being audited... If your income is over a million dollars a year, you have a 1 in 11 chance of being audited. If your income is $100,000 or less per year, you have a 1 in 100 chance of being audited. And for those of you with incomes in between, your chances are in between also.

Lucky for us, audit rates are up across the board. The IRS audited almost 1.4 million tax returns in fiscal 2007, which was about 1% of total individual tax returns. And if you're one of the unlucky who are selected to be audited, you can find a few tips for getting through the trauma successfully on my corporate site.

More on Taxes

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Top Tax Deductions for Consultants

Consultants are likely to have deductible business expenses that can help you save big on your taxes. A checklist can help you account for every deduction you’re entitled to use. Here are the top tax deductions for consultants.

Read More

Brought to you by TurboTax.com

Seven Things You Didn't Know About Taxes

You know your federal taxes pay for government programs and services, like roads and national defense. And you may even know the difference between FICA and income tax. But did you know if you want to buy sparklers in West Virginia, you can expect to pay a special fee?

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill will affect the taxes of most taxpayers, but one key point to keep in mind is that for most people, the bill won't affect your taxes for 2017 (the one you file in 2018).

Read More

Brought to you by TurboTax.com

Video: How to Estimate the Value of Clothing for IRS Deductions

Learn how to estimate the value of clothing for IRS tax deductions as charitable donations. The value of clothing donations to charity are based on published lists of retail values or current thrift store prices. List your donation values on the Form 8283 with the help of TurboTax in this video on filing annual taxes.

Read More

Brought to you by TurboTax.com
Read Full Story