Last bad news of the day because I'm just not in the mood
Study: Audits of Businesses Down Last Year (AP)
Study: Audits of Businesses Down Last Year
By MARY DALRYMPLE, AP Tax Writer
WASHINGTON - The Internal Revenue Service (news - web sites) audited fewer corporations, small businesses and partnerships last year but more individual taxpayers, according to a study of government data.
Syracuse University's Transactional Records Access Clearinghouse, in its analysis of IRS data, made available Sunday, concluded that the audit rate for businesses of all sizes slid slightly last year to 2.1 audits for every 1,000 businesses, down from 2.2 audits per 1,000 businesses the previous year.
At the same time, the IRS audited 14 percent more individual tax returns. The audit rate for individuals increased last year to 6.5 audits for every 1,000 taxpayers.
Official audit rates released by the IRS last month show a similar trend.
Researchers said the declining audits of businesses exposes a flaw in the administration's tough stance against corporate wrongdoing.
"These and a number of other measures — documented by the agency's own data — indicate that the actual performance of the IRS differs in significant ways from some of the Bush administration claims when it comes to cracking down on corporate scofflaws," the report said.
