BrokerageIndustry News

Agents: Are you an IRS audit target?

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Every year, the Internal Revenue Service releases detailed statistics about who got audited the previous year.The stats for 2011, covering 2010 returns -- have recently come out and they paint an unpleasant picture for many real estate professionals -- particularly the successful ones. The percentage of business and nonbusiness returns that got audited in 2011 is shown in the following chart:IRS Audit Rates (2010)   Audit Rate Sole proprietors   Income under $25,000 1.3% $25,000 to $100,000 2.9% $100,000 to $200,000 4.3% $200,000 and more 3.8% Partnerships 0.4%S corporations 0.4% C corporations   Assets under $250,000 0.9% $250,000 to $1 million 1.6% $1 million to $5 million 1.9% $5 million to $10 million 2.6% Nonbusiness Returns ...