I.R.S. Scrutiny of Big Firms Plummets, Study Says-Collapse In Audits

[babylonsister]

I.R.S. Scrutiny of Big Firms Plummets, Study Says

By LYNNLEY BROWNING
Published: April 14, 2008



Most Americans dread tax season. But corporate America seems to have less to fear from the Internal Revenue Service than it used to, according to a new study.

The I.R.S.’s scrutiny of the nation’s biggest companies is at a 20-year low, according to the study, conducted by Transactional Records Access Clearinghouse, or TRAC, a research group affiliated with Syracuse University.

The study, made public Sunday, points to “a historic collapse in audits.” It found that major corporations — defined as those with assets of at least $250 million — have about a one in four chance of being audited, down from about three in four in 1990.

For Americans with incomes above $100,000, the chances of being audited in 2006 were 1 in 59. Above $1 million, the odds increased to 1 in 16.

The study’s findings stand in sharp contrast to the tough talk coming out of the I.R.S. in recent years. The report suggests that the agency is shifting its focus away from big corporations to smaller companies, private partnerships and other private entities, a move that tax lawyers said was consistent with trends they were seeing.

more...

http://www.nytimes.com/2008/04/14/business/14irs.html