No Joke: IRS Audits of the Wealthy Up 80 Percent in 2010

12:01 pm Uncategorized

Uncle Sam pointing finger e1301684387423 No Joke: IRS Audits of the Wealthy Up 80 Percent in 2010According to the most recent IRS Data Book, audits of taxpayers who reported income of $10 million or more increased 80 percent in 2010.  Last year, 18 percent of taxpayers in that wealth category received an audit notice, almost double the rate of just two years ago.

In addition, 12 percent of taxpayers with incomes in the $5 million to $10 million range were subjected to an audit, and seven percent of those reporting $1 million to $5 million in income were audited.

In 2009, the IRS signaled its intent to start pursuing the rich by setting up a Global High Wealth Industry Group made up of “A-list” examiners trained in coordinated corporate audits, offshore trusts and other sophisticated financial, business and investment arrangements with complicated legal structures.  The group is focusing on a variety of financial instruments and asset classes, from derivatives to real estate as well as trusts, royalty and licensing agreements, revenue-based or equity-sharing arrangements, private foundations, privately held companies and partnerships.

For legal guidance on wealth preservation and asset protection, contact our California estate planning law firm.

Help is available to you by contacting your Southern California financial planning experts today.

Leave a Comment

Your comment

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.