IRS Tax Audits and
Tax Under-Reporting Found
1995

(click here for 2002)

Return Type
Number of Returns
(thousands)
Percent
Dollars**
(millions)
Percent
Total
1,971
100%
$25,427
100%
Individual income tax returns
low/middle income*
88.2%
20.4%
---nonbusiness
1,493
$3,999
---business: schedule C
240
1,173
---farm: schedule F
6
15
high income*
9.1%
10.1%
---nonbusiness
114
1,455
---business: schedule C
59
1,053
---farm: schedule F
7
63
Corporate income tax returns
less than $250 million
48
2.4%
2,882
11.3%
$250 million or more
4
0.2%
14,788
58.2%

Source: TRAC analysis of Internal Revenue Service data

* low/middle income is less than $100,000 in total positive income or total gross receipts; high income is $100,000 or more.

**additional tax and penalties recommended.

Transactional Records Access Clearinghouse, Syracuse University
Copyright, 1997