Improvements in Targeting of IRS Correspondence Audits FY 2001 vs FY 2006

		Number Audits		No Change Audits		Percent Productive*		Improvement Rate**
		FY 2001	FY 2006	FY 2001	FY 2006	FY 2001	FY 2006	Improvement Rate**
Non Business (TPI)	< $25,000 (1040A type)	327,267	154,478	49,263	17,936	84.9%	88.4%	4.1%
	< $25,000 other	41,316	290,680	8,928	44,167	78.4%	84.8%	8.2%
	$25,000 < $50,000	34,853	149,155	9,063	24,106	74.0%	83.8%	13.3%
	$50,000 < $100,000	24,922	102,538	7,984	29,208	68.0%	71.5%	5.2%
	$100,000 or more	30,311	110,433	10,712	26,995	64.7%	75.6%	16.9%
	Subtotal: NonBusiness	458,669	807,284	85,950	142,412	81.3%	82.4%	1.4%
Business Sch. C (TGR)	< $25,000 TGR	55,527	108,578	8,628	12,406	84.5%	88.6%	4.9%
	$25,000 < $100,000 TGR	15,953	46,917	4,643	7,751	70.9%	83.5%	17.7%
	$100,000 TGR or more	5,733	35,325	2,021	4,331	64.7%	87.7%	35.5%
	Subtotal: Schedule C Business	77,213	190,820	15,292	24,488	80.2%	87.2%	8.7%
Farm Sch. F (TGR)	< $100,000 TGR	882	897	201	254	77.2%	71.7%	-7.2%
	$100,000 TGR or more	1,071	586	191	252	82.2%	57.0	-30.6%
	Subtotal: Schedule F Farm	1,953	1,483	392	506	79.9%	65.9%	-17.6%
Total:		537,835	999,587	101,634	167,406	81.1%	83.3%	2.7%

*	Percent of audits that result in a recommended tax change.

**	Percent improvement is calculated as the difference in percent productive between FY 2001 and FY 2006 relative to proportion productive in FY 2001.