Watchdog Agency Says IRS Doesn't Audit Superrich Enough
A Treasury Department agency dedicated to oversight says it isn't certain whether the IRS has a "clear rationale" for who it audits.By Cliff Judy | November 21, 2015
Who qualifies as "high income" in the U.S. might be changing after an audit found the IRS isn't focusing enough resources on the superrich.
The report from a Treasury Department agency dedicated to IRS oversight shows every audit hour of people making $5 million or more nets the government $4,545. Every hour dedicated to someone making in the $200,000-$400,000 range? Just $605 an hour.
That in itself isn't terribly surprising. More income means more possible money missed. And the report's own intro even says high-income taxpayers are more likely to be involved in complex financial arrangements with "aggressive tax planning."