Being rich isn't always a good thing. Your chances of being audited increase dramatically the more income you report.
While the IRS audits only 1% of taxpayers overall, those odds rose to 7% for people with income between $1 million and $5 million last year. About 21% of taxpayers with income between $5 million and $10 million were audited, and 30% of people making $10 million or more were dealt audits.
If you have a lot of income to report, make sure you get a savvy preparer so at least you'll have everything documented should the IRS come knocking.
"The rich is where the new focus is, and it's because of one reason -- it's generating extra income for the IRS," said Georgetown's Cooke. "And because upper income filers tend to have a lot more complicated returns, that makes it easier for the IRS to go after them."
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