More audits for all, says the IRS! Especially the rich. 1 out of every 11 millionaires was audited in 2007. The rest of us earning less than $100,000 had only a 1 in 100 chance of receiving the Torquemada treatment. [Mercury News]

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  1. PølάrβǽЯ says:

    IMHO, 1 out out of every 1 millionaires should be audited. That’s one of the prices they should pay for being rich. And if the IRS can’t afford to audit all of them, then apparently they aren’t paying enough taxes!

  2. Rando says:

    Since there isn’t a law stating we are required to pay income tax…is there a law stating we are required to preform these stupid audits?

  3. Chongo says:

    Are there any articles on Consumerist to help people through an Audit? I fear that I’m going to get one this year. This year I made a decent living but for about 5 years before this I made no more then a couple thousand at the most. Something tells me going from nothing to what I’m making now is going to trigger some kind of red flag.

  4. ConnerC says:

    @randotheking:

    There isn’t a law because there is an amendment.

  5. Tracy Ham and Eggs says:

    @randotheking: guess what, just cause its not in the constitution doesnt means there is no law.

  6. nequam says:

    @randotheking: In any event, I’d expect your foil hats to be tax deductible.

  7. ideagirl says:

    @nequam: presumably as a medical expense?

  8. AD8BC says:

    @Chongo: I wouldn’t worry. There are more red flags than just making a bunch more money one year than the past few. My tax return this year will be much more convoluted than last years, and even though I sold a house, bought a house, had a full relocation package from my employer, got a large grossed-up bonus for moving, etc. I’m not too worried.

    The two years I worked in London, with foreign tax credits, being on a “shadow” payroll in England, paying taxes to Her Majesty the Queen, my employer grossing things up so after all was said and done my after-tax income was the same as if I hadn’t left the states, etc… were difficult tax years with lots more forms and numbers and such and it didn’t trigger a whimper.

    Now all of a sudden start donating 50% of your income to charity after it jumps 50%, and I betcha that will get the suits knocking at your door….

  9. MelL says:

    @aaron8301: Why should they have to pay a price for being rich?

  10. asherchang2 says:

    Down with tax shelters and all the other stupid tricks the rich pull to get away with paying less taxes!

  11. mikelotus says:

    mercury news link “file not found”

  12. AD8BC says:

    Scrap the income tax. A 10% national sales tax on goods other than food, clothing, and shelter would more than cover our national needs. Poor people would not have to pay any national tax on the basics of survival. No more tax shelters would be necessary because there would be no need to shelter your income. No more estate taxes.

    Downsides: IRS agents and tax preparers would lose their jobs. There would be no tax writeoffs for home mortgage interest or property taxes so there would be less (mut not much less) incentive to own a home. No more writeoffs for charitable contributions (and I have run a charitable organization in the past and I know most charitable donating is done at the end of the year for “tax purposes”).

  13. AD8BC says:

    @mell: I agree, if there needs to be an income tax it should be flat and fair for all. It doesn’t matter if you earned or inherited your money, it should be just as fair to you as it is for a poorer person.

  14. brokeincollege says:

    Let’s do this: cut the current tax rates in half, increase the brackets by 50% (meaning 100k-150k->150k-225k), but no deductions or credits whatsoever. Adjust brackets for inflation every year. I’d be willing to pay 17.5% if the 1040 had 2 lines on it: How much money did you make this year? Put amount in line 1. How much in taxes were withheld from your income? Put amount in line 2. How much do you actually owe? Line 1 times the percentage in table 1. Line 2-Line 3. Put amount in line 4. This is your tax liability/refund. If the amount is below zero, Go to line 5. Line 5: I would like my refund direct deposited, mailed by check, applied to next year’s tax bill, or in cash.

    With all the deductions and what not, that’s how much most people pay anyway.

  15. buck09 says:

    @Rando:

    There is a law. US Code, title 26. But you already knew that. So far, not one person who has gone to court over this has successfully made this argument. (Some have avoided criminal prosecution, but 100% have had the tax assessed on them in the end.)

  16. Rando says:

    @buck09: Incorrect. There have been numerous cases where the IRS has lost the battle, completely – HOWEVER the court costs themselves are more than the taxes