IRS Statistics About Small Business Audits

IRS Audits of Small Businesses Soar

statisticsSince 1990, there has been an increase in the number of audits the IRS has performed on small to medium sized businesses in our country. The IRS recoups $702 in taxes for every hour it spends auditing a small business, while in contrast, it recoups $9173 per hour when auditing a large business.  And yet, IRS statistics show a dramatic increase in audits of small businesses during the last fiscal year.

IRS Statistics show that the audit coverage for businesses with assets in the following amounts increased at the following rates during the years 2011 - 2011:

  • $200,000- to $10 Million - 7.45%
survining audit business
  • $10 Million and higher - 2.80%
  • S- Corporations  - 16.95%
  • Partnerships - 21.21%

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