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    IRS contacts 1 in 8 millionaires for extra taxes

    IRS contacts 1 in 8 millionaires seeking extra taxes, just 1 in 100 earning under $200K yearly

    WASHINGTON (AP) -- One in eight people earning at least $1 million annually was audited by the Internal Revenue Service last year, making them far likelier to be examined than those making below $200,000, according to IRS data released Thursday.

    Just 1 in 100 individuals earning less than $200,000 had their income tax returns examined, the IRS said.

    The 12 percent of millionaire earners audited in 2011 was appreciably higher than the 8 percent who were audited in 2010. IRS officials said the high ratio was part of an effort to demonstrate that tax laws are applied fairly.

    "That has been something we've concentrated on to assure that there's equity in the system, to assure that those at the lower end of the spectrum know that those at the higher end of the spectrum are subject to the same rules and enforcement as everyone else," Steven Miller, deputy IRS commissioner for services and enforcement, said in an interview.

    In recent weeks, President Barack Obama and congressional Democrats have sought to boost taxes on the wealthy as a way to pay for jobs programs, a theme they are expected to continue in this presidential and congressional election year. IRS spokeswoman Michelle Eldridge said the growing portion of millionaire earners' returns audited is not related to politics.

    "The IRS is an agency of civil servants, and we base our audit decisions on tax issues — nothing else. We don't play politics here," she said.

    Between 2004 and 2009, the percentage of millionaire earners audited ranged between 5 percent and 7 percent.

    The data was divided into only three categories of income: below $200,000, $200,000 and up, and $1 million and higher.

    About 1 in 25 people earning $200,000 and more was audited in 2011.

    The IRS also audited a greater proportion of large corporations than smaller ones, the data shows.

    Last year, 1 percent of corporations with assets under $10 million were audited. Among corporations with assets of $250 million and up, 28 percent were audited.

    The IRS said its enforcement efforts to collect all taxes owed — which include audits, court cases and other activities — netted $55 billion last year. That is nearly $3 billion less than the previous year, which Miller attributed to a falloff in estate taxes and corporations writing off their losses.

    All together, the IRS audited nearly 1.6 million of the 141 million individual income tax returns that were filed. In 2010 — the most recent year available — more than 8 in 10 individuals audited ended up paying additional taxes.

    The agency collected a total of $2.3 trillion in revenue last year from individuals and businesses, including the $55 billion from its enforcement efforts.

    The IRS figures also showed that:

    —In 2011, the agency garnisheed wages or seized money from bank accounts 3.7 million times, put liens on property 1 million times and seized 776 pieces of property.

    —77 percent of individual returns were filed electronically last year, up from 69 percent in 2010.

    —70 percent of callers to IRS taxpayer information telephone lines got through, slightly less than the 74 percent who reached someone in 2010. Miller attributed that to budget cuts to the agency.

    —The information IRS officials dispensed over the phone to taxpayers was accurate 93 percent of the time, the same as the previous year.

    —The IRS website, www.irs.gov, was visited 319 million times in 2011, a slight increase.

    The data was presented by federal fiscal years, which begin on the previous Oct. 1.

     
    • Bobby  •  Las Vegas, Nevada  •  1 month 21 days ago
      Since all the US Senators have had years making over 1 million dollars, does that mean around 7 of them were audited during each full term as a Senator? Staggered every two years of course.... How many have been audited?
    • PETERM  •  Pleasanton, California  •  1 month 21 days ago
      It's time for the IRS to audit every member of Congress. They would have no objection to be audited for they tell the truth all the time and wouldn't think of defrauding the same government for which they work. They are all honest and held in the highest regard. #$%$ they are all dishonest and damit the IRS should audit every one of them for all tax returns filed over the past three years. Then we will learn who is honest and who isn't and it will surprise everyone.
    • Greymantle  •  Eureka, Montana  •  1 month 21 days ago
      all politicials and office holders (elected or not) should be audited every two years as a condition of holding that office.
    • Jack  •  Southfield, Michigan  •  1 month 21 days ago
      IRS.. Take A Good Look At Congress..
    • Robby  •  1 month 21 days ago
      Thomas Jefferson said when people fear government there's tyranny whenthe government fears the people there's freedom.
    • BigDaddy  •  Pleasanton, California  •  1 month 21 days ago
      Audit what happened to our social security money
    • Dreamtime  •  1 month 21 days ago
      Who's auditing the IRS?
    • TVmademe  •  Atlanta, Georgia  •  1 month 21 days ago
      Audit the federal reserve.
    • Jenny  •  Atlanta, Georgia  •  1 month 21 days ago
      My 80 year-old parents were audited last year because the IRS didn't believe that the amount of money and items that they donated to charities was true. My parents had all the receipts and documentation, luckily.
    • Psycho Dad  •  Washington, District of Columbia  •  1 month 21 days ago
      Can we please audit the private investors behind the federal reserve?
    • Chuck  •  1 month 20 days ago
      Suggestion to the IRS....Why don't you start with the millionaire crooks in congress!
    • Dataman  •  1 month 21 days ago
      A wise man told me that there are two kinds of people - chiselers and suckers. The chiselers keep the system going by convincing the suckers that if they, the suckers, hang in there long enough, they, too, can one day be chiselers.
    • Angie  •  1 month 21 days ago
      Why not audit the real big dogs? The multi-millionaires, and billionaires, and please let's audit ALL of our politicians. Come on, let's see Exxon, Hailburton, Bank of America, Citibank, and let's make sure All of Congress gets their turn under the microscope.
    • Peter  •  Wood Buffalo, Canada  •  1 month 6 days ago
      IRS chose who to be audited. When it comes to poor guys, no chance!
    • Robert  •  Warrensburg, Missouri  •  1 month 21 days ago
      ""The IRS is an agency of civil servants, and we base our audit decisions on tax issues — nothing else. We don't play politics here," she said."Man!! Did my #$%$ detector go into full red-flag mode at this statement!!!
    • chris  •  1 month 20 days ago
      No politics here. Chris Dodd, with all his special mortgage deals, was he audited? How about Franklin Raines at Fannie Mae, an audit for him? I doubt it. How about the executive at Solyndra, who walked away with all that case at taxpayer expense. An audit for them? How about Jon Corzine, was he audited? But don't worry, there are no politics here, none at all. Just move along now, sheep.
    • John  •  1 month 21 days ago
      Land of the free my []ss. Every American is a slave of the system, freedom is just a state of mind.
    • Steve  •  1 month 20 days ago
      When can we audit the treasury?
    • MxGuy1000  •  1 month 21 days ago
      Any one here buy the "The IRS is an agency of civil servants" Crock?
    • FredF  •  1 month 21 days ago
      I'd hate to think we're all treated equally under the laws. That would just be wrong.

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