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September 29, 2023

It Appears That the IRS Really Enjoys Auditing Millionaires

How do we know? Well for starters, the number audited tax returns with income over $1 million went up by nearly 50% last year.

The U.S. Internal Revenue Service said it audited 12.48 percent of individual tax returns (USCBTAXR) with income exceeding $1 million during fiscal 2011, a high that was reached at a time of debate over the taxation of top earners. The announcement marks the third consecutive year that the IRS has increased its audit rate on returns showing income of over $1 million. The IRS said it audited 8.36 percent of returns in that category during fiscal 2010. 

Other than the numbers presented, we don't really have any proof that the Service is getting some kind of sick thrill out of besetting the millionaire club but gosh, why else would someone – ANYONE! – want to do 50% more work? 

U.S. IRS Audited Record 12.5% of Millionaires in Fiscal 2011 [Bloomberg]

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