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View Diary: NYT: Bain’s tax “dodging” is "not legal," “subject to serious I.R.S. challenge” (128 comments)

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  •  Technically now, "the higher the income, the... (1+ / 0-)
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    kurt

    greater the likelihood of audit".  Today, a little more than a year since the (IRS) high-wealth group was put into serious motion and two and a half years since the group was announced... (emphasis mine)

    ...it has completed 36 audits of around 12 to 18 high-wealth individuals...

    ...Audits on 12.5 percent of all millionaires pulled in $5.1 billion for fiscal year 2011, according to the IRS...

    A better barometer for us is not the number of cases closed, it’s the number of open cases,” IRS spokesman Terry Lemons told The Daily Beast. The group has cases open on 100 individuals involving 500 returns, with audits on another 200 individuals in the pipeline, Lemons said.

    Tax-return complexity is a significant hurdle...

    The returns’ complexity can mean that open cases on high-wealth individuals may take years to close, Lemons said.

    Another issue has been...What exactly does “high wealth” mean? The agency won’t give a precise number, but...(in a) speech, Shulman defined “high wealth” as referring to individuals with tens of millions of dollars or more in assets or income.

    ...more than 8,000 Americans reported income greater than $10 million....Out of a likely pool of more than 8,000 taxpayers, then, only one to two dozen high-wealth individuals have been audited.

    Of those one to two dozen "high wealth" taxpayers, whose returns were audited, "one third were..compliant" and the cases were closed.  The other two-thirds apparently either were found not to be compliant, or those cases are still open.

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