Who was audited?

  1. Who was audited?

    The IRS released tables of various enforcement results from prior years through FY 2010. A total of 1,581,394 individual income tax returns were audited during FY 2010, which works out to a coverage rate of 1.11%, compared to 1,425,888 returns audited during FY 2009 with a 1.03% coverage rate. Close to 80% of the audits in FY 2010 were correspondence audits. The audit coverage rates for other entities for FY 2010 were as follows: .94% for corporations with less than $10 million of assets, 14.16% for corporations with $10 million or more of assets, .36% for partnerships, .37% for S corporations, and 1.47% for tax-exempt organizations.

  2. You will have more time to file this year!

    Taxpayers will have until Monday, 4/18/11 to file their 2010 tax return and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls on Friday, 4/15/11, so the tax deadline nationwide is delayed under IRC Sec. 7503 to the next day that is not a Saturday, Sunday, or legal holiday. Taxpayers requesting an extension will have until 10/17/11 to file their 2010 tax return because 10/15/11 is a Saturday. As previously announced, taxpayers claiming tax benefits that were reinstated for 2010 by the Tax Relief Act of 2010 (the State and Local General Sales Tax Deduction, Higher Education Tuition and Fees Deduction, and Educator Expense Deduction) need to wait to file. The IRS will announce a specific date in the near future when it can start processing tax returns impacted by these recent tax law changes.

  3. You will see more in your paycheck this year!

    The IRS published Notice 1036 , which contains early release copies of the 2011 percentage method income tax withholding tables and related information employers need to implement the 2010 Tax Relief Act’s (1) reduction in the Social Security payroll tax from 6.2% to 4.2%, (2) continuation of 2010’s income tax rates, and (3) termination of the Making Work Pay Credit on 12/31/10. Employers should start using these withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011, but not later than 1/31/11.