IRS TARGETS

Physician's Money Digest, August15 2003, Volume 10, Issue 15

Although the overall IRS auditrate is down, the agency is steppingup its review of small businesses (likephysician practices), targeting thosethe feds feel have a high likelihood ofunreported income. The IRS is alsogearing up to do random audits on50,000 selected returns, with about1700 taxpayers going through a rigorousline-by-line audit. Another32,000 taxpayers will undergo face-to-face audits on specific areas oftheir returns. In addition, the IRS isboosting enforcement efforts onother tax scams like offshore creditcard schemes and abusive trusts. Ifyou're called for an audit, bring yourattorney or your accountant withyou. You should also consult IRSPublication 556 (www.irs.gov) for alist of your rights.