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This just in … taking Vitamin C on a daily basis does not prevent colds, killer bees have infested the US, the Beckhams have invaded LA, and the IRS is reinstituting their
random audit program.
See? In light of everything else going on, a few random audits don't seem so bad after all. As promised, here is
what you need to know about the program:
- Starting in October, the IRS will target approximately 13,000 tax-returns from 2006 across various income categories.
- With 136 million tax returns expected this year, your chances of being chosen are approximately .00956%, or about 1 in 10,461. Practically speaking, this means that you have a slightly higher chance of death by drowning than you have to be selected for a random audit.
- To the last point, your chances for a "random" audit go up significantly, however, if you've made $136 million and only pay $13,000 dollars in tax.
- The program is designed to help the IRS gather data to update their top-secret formulas which help them to determine which returns to audit.
- The IRS estimates the current tax gap (i.e. the difference between what the government actually collects and what it should collect) to be about $290 billion.
It almost makes you want to volunteer to help, doesn't it?
Seriously, if you happen to be targeted for a random audit (or an intentional one for that matter) take two Vitamin
C and call your CPA in the morning.
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