IRS Tax Audits and
Tax Under-Reporting Found
1996

(click here for 1995)

Return Type
Number of Returns
(thousands)
Percent
Dollars**
(millions)
Percent
Total
2,001
100%
$25,559
100%
Individual income tax returns
low/middle income*
86.5%
18.2%
---nonbusiness
1,533
$3,755
---business: schedule C
190
889
---farm: schedule F
8
17
high income*
10.5%
11.5%
---nonbusiness
129
1,713
---business: schedule C
71
1,149
---farm: schedule F
10
77
Corporate income tax returns
less than $250 million
56
2.8%
3,404
13.3%
$250 million or more
4
0.2%
14,555
56.9%

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, 1998