IRS Policies Limit Access to Information on District Enforcement

New IRS policies limit access to information on district enforcement. For district audits of returns filed by individuals, the table shown below presents the amount of information missing in the district breakdowns. For corporate audits, the FY 2000 figures for districts are based upon an annualized projection of eight months worth of data since no district breakdowns were released by IRS for the last 4 months of that fiscal year. District breakdowns for corporate audits in FY 2001 are only available for 1.8% of the additional taxes recommended -- too miniscule to be meaningful. National figures in TRAC's databases for both individual and corporate audits are complete. For further details, see new findings.

While available information on district audits of individual returns for FY2001 are included in TRAC's district audit database, individual figures by district should be used with caution since they are incomplete. The extent of missing information varies by return type/income class as shown below:

IRS District Audits of Income Tax Returns Filed by Individuals
Extent District Location is Not Known


Return Type/Income Class
Number of Returns Audited Additional Taxes Recommended
Total No Info Percent
No Info
Total No Info Percent
No Info
All 1040/1040A Returns 202,501 6,700 3.3 $1,969,768,566 $414,572,199 21.0
1040A < $25,000 TPI 32,506 203 0.6 $181,080,542 $3,006,090 1.7
non1040A < $25,000 TPI 15,035 219 1.4 $115,405,006 $4,912,554 4.3
$25,000 < $50,000 TPI 33,562 312 0.9 $119,874,747 $5,553,848 4.6
$50,000 < $100,000 TPI 30,095 546 1.8 $150,343,457 $4,833,394 3.2
$100,000 TPI or more 35,171 4,248 12.1 $764,483,567 $297,305,506 38.9
Sch C: < $25,000 TGR 15,015 120 0.8 $95,707,590 $42,661,307 44.6
Sch C: $25,000 < $100,000 TGR 19,214 229 1.2 $123,747,629 $5,725,031 4.6
Sch C: $100,000 TGR or more 18,523 692 3.7 $382,560,083 $34,594,861 9.0
Sch F: < $100,000 TGR 1,233 10 0.8 $2,751,524 $108,434 3.9
Sch F: $100,000 TGR or more 2,147 121 5.6 $33,814,421 $15,871,174 46.9

TPI = sum of all positive income items. TGR = total gross receipts.

"No Info" are audits conducted by the IRS Large and Mid-Size Business Division which withheld area/territory information on its audits.



Copyright 2002, TRAC Reports, Inc.