The following article is from the SPE 1031 exchange website:
What are the chances of being examined? A total of 1,007,874 individual income tax returns were audited during fiscal year 2004 (Oct. 1, 2003 through Sept. 30, 2004) out of a total of 130.1 million individual returns that were filed in calendar year 2003. This works out to 0.77% of all individual returns that were filed. In the prior fiscal year, 849,296 returns were audited; the audit rate was about 0.65 Year-over-year, the number of corporations (including S corporations) audited dropped by almost 25%, from 30,700 in 2003 to 23,499 in 2004. Only 0.32% of small corporations (assets under $10 million) were audited; for 2003, the audit rate was 0.58%. [ full article ]
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