IRS Releases Audit Figures for Rich Americans

Physician's Money Digest, September 2006, Volume 13, Issue 9

Wall Street Journal

Although you probably want to makemore money as a physician, even if youwere making over $1 million per year,there's still a good chance you couldface an audit. The IRS recently disclosedthat in 2005 they performed11,715 audits (5.2%) onthe 225,000 Americans who reportedincomes of $1 million or more in2005. According to the ,this rare data revelation was brought aboutas the result of a report by SyracuseUniversity that stated the IRS had only conductedface-to-face audits on 30 householdswith $1-million-plus incomes. Agencyofficials state that the contrariety was dueto a change in the way they keep theirrecords, recently adding a new audit classificationof $1 million or more. For Americansearning $100,000 or more, which includes agood chunk of physicians, the IRS says theyaudited 221,426 of these tax filers in 2005,up from 166,221 in 2004.