IRS Going After The Wealthy

The IRS has long been feared for its audit powers. Well, now the wealthy are trembling a bit. Why? The IRS is cranking up its audit rates of the wealthy to staggering numbers. 

The audit rate for us regular Joe’s is roughly 1 to 2 percent. This means that out of 100 of us, 1 or 2 will get audited by the IRS. The figures change a bit as you earn more money. Those who make over $10 million a year have traditionally seen audit rates of upwards of 5 percent. This means out of 100 taxpayers above this amount, 5 will get audited.

The IRS has been instructed by Congress to work over taxpayers for more money. The problem is the federal government is dead broke. We have a national debt approaching $14.5 trillion as I write this and total unfunded liabilities over the next 30 years of more than $100 trillion when you consider the cost of Medicare, Social Security and other government programs. In short, we are hurting.

If you were charged with squeezing more money from taxpayers, where would you look? The IRS thinks the answer is the wealthy. The rates of tax audits for the wealthy didn’t go up in 2010. They exploded. [Insert drum roll here…]. The IRS is now auditing over 18 percent of those who make more than $10 million a year. That means 18 out of every 100 people is going to be nailed to the proverbial cross. 

Now, I fully admit that it can be a bit difficult summoning up sympathy for people making more than $10 million a year. That being said, the fact the IRS is going so hard after such people should be an eye opener. Why? It is only a matter of time before the agency starts working its way down the taxpayer levels. The government needs money and it has to get it someway. 

That means the IRS is eventually coming for you and me.