The Internal Revenue Service (IRS) has reported that audits of individuals topped 1 million in fiscal year 2012 for the sixth year in a row. This represents 1.03 percent of all tax returns filed. Audits of individuals in the upper income ranges were substantially higher than in other categories.
The IRS noted that it increased its examinations across all categories of business returns by more than 12 percent in 2012. The largest increases were seen in audits of pass-through entities such as partnerships and S corporations. More than 20 percent of returns for the largest corporations were audited in 2012.
For the third year in a row, the IRS collected more than $50 billion in enforcement revenue.
Electronic filing by individuals continued to increase. The e-filing rate for individuals exceeded 80 percent for the first time in 2012.
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