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Are you on IRS enemy list? Some Americans face 70% chance of audit!

NEW CLASS OF PEOPLE IDENTIFIED AS IRS ENEMIES

This group faces 70% chance of full audit

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by GINA LOUDON 

It is no secret that the IRS watches certain groups of taxpayers with increased scrutiny. For instance, millionaires have about a one-in-eight chance of being audited.

There is another segment of American taxpayers who face approximately six times those odds of a visit from the IRS: adoptive parents.

Adoptions are expensive. The average cost of adoption is $30,000. In response to those costs, and the millions of children in the U.S. and abroad waiting to be adopted, Congress passed Adoption Tax Credits. States then began to match those credits.

New information from the Taxpayer Advocate Service says that 90 percent of those who filed for the adoption tax credits in 2012 were asked for “additional information.”

And the study says 69 percent of the families who adopted were ultimately audited by the IRS. In comparison, millionaires have 12 percent chance of being audited. On average, $117,000 more in taxes is collected per audited millionaire. The audits of adoptive families bring in substantially smaller yield of 1.5 percent additional revenue.

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