Fiscal year 2006 saw 52,000 business audits, and audits of large corporations with assets of more than $250 million are up 30% over the past five years.
The IRS expects to focus on key noncompliance categories–such as small businesses and self-employed individuals–identified in the National Research Program (NRP)–in an ongoing effort to improve taxpayer compliance and reduce the tax gap. In addition, the IRS recently announced that it will launch a new NRP reporting compliance study for individual taxpayers using a multi-year, rolling methodology.