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April 13, 2012updated 04 Apr 2017 3:41pm

IRS lax in auditing the ultra-wealthy, research

A research by Syracuse University has revealed that a new Internal Revenue Service (IRS) team looking at the business activities of the ultra-wealthy has been lax in its auditing.

By Verdict Staff

The research says that the IRS team has reviewed only one privately held company and 10 partnerships in fiscal 2011.

In late 2010, the IRS team had set a goal to audit 15 privately held companies known as S-corporations and 60 partnerships for the year 2011.

"This program has not lived up to the fanfare with which it was announced," said Transactional Records Access Clearinghouse (TRAC) at Syracuse.

TRAC uses data obtained by court order under Freedom of Information Act requests.

Meanwhile IRS defended its work with Terry Lemons, an IRS spokesman saying the TRAC report to be highly misleading absolutely wrong to suggest that they are not auditing millionaires.

Lemons cited severe budget limitations as the reason for the tax-collecting agency’s global high wealth group missing its business audit targets.

According to TRAC, IRS had completed 36 audits of millionaire taxpayers in the 17 months through February 2012.




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