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National

Increased IRS Enforcement Actions Net Billions

RENEE MONTAGNE, host:

Our business news starts with an IRS audit.

(Soundbite of music)

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MONTAGNE: The IRS says it's collecting more money from tax cheats. Last tax year, a record $48.7 billion from enforcement actions. The agency says it has also increased the number of audits it conducts, including audits of wealthy taxpayers. NPR's Jack Speer reports.

JACK SPEER: IRS Commissioner Mark Everson says the odds of having to sit down with an IRS examiner have gone up, especially for those making $1 million a year or more.

Mr. MARK EVERSON (IRS Commissioner): It's up to where it's now over 6 percent. That's to say that you've got an 1 in 16 chance of being audited if you're making that kind of money. So if we see a problem, you're going to hear from us.

SPEER: And the commissioner says the IRS is also looking more closely at charitable contributions.

Mr. EVERSON: We're doing more in the tax-exempt area. There's a lot of concern in this country to make sure charities aren't being abused.

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SPEER: The agency says it increased those audits by 43 percent last fiscal year. But Everson acknowledges despite the tougher enforcement actions, those looking to beat the taxman continue to try, including by moving their money offshore.

Mr. EVERSON: Individuals and businesses alike get increasingly sophisticated in their attempts to hide income from us, particularly when you look at the impact of international transactions and globalization. There's not a lot of transparency in this area.

SPEER: But despite all the stepped-up enforcement actions, there are those who think the IRS needs its own lesson in transparency. Chris Bergin is with the nonprofit group, Tax Analysts. His organization filed suit yesterday in federal court seeking monthly enforcement data from the IRS. Bergin says despite repeated requests over a 15-month period, the agency still hasn't responded.

Mr. CHRIS BERGIN (Tax Analysts): We think it would be helpful if others outside the IRS and the press saw these performance reports so we could discuss how well the IRS is or isn't doing.

SPEER: But IRS Commissioner Everson says his agency is doing a better job of getting enforcement reports out to the public. He said the total number of individual tax returns audited by the government last fiscal year was the highest it's been since 1998.

Jack Speer, NPR News, Washington. Transcript provided by NPR, Copyright NPR.