The U.S. Government Accountability Office estimates, in a recently released study, that 41% of tax appeals cases received some relief.
IRS audit frequencies are rising, up some 20% in 2005 to 1.2 million returns. They’re expected to rise even further in 2006. Prime targets, according to the IRS, are wealthy individuals and tax shelter users.
If you are audited, you may be assessed more money. If you disagree, you can appeal. The recent study seems to show that you have a reasonable chance of winning. For more information, see IRS Publications 5 and 556 at www.IRS.gov.
This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2012.
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