Cheating on your taxes isn’t something that most American’s do but according to a new report by the IRS, your chances of getting audited are at a 11 year low. Less than 1% of individuals that file their 2014 taxes will be audited. For wealthy individuals,the chance of getting audited is now down to 7.5%. And for large companies, they now have a 12.2% chance of getting audited. This is a drop from 16.7% four years ago.
The reason for the lower audit rates is a drop in federal funding for the agency. The amount the agency receives in funding has dropped 10% wile the number of employees has decreased 8% over the past four years. Some fear that the agency might not be able to collect taxes if the number of filed returns continues to increase while funding continues to drop. Some of the decrease in funding occurred when the agency targeted Tea Party groups illegally and then avoided providing emails and documents related to the illegal action.
Some argue that reducing funding will penalize honest tax payers and let cheats get away with stretching the tax law in their favor.
Turbotax - Obamacare & Taxes - IRS Wants More Funding - Special Report