Cafferty File

Could you pass an IRS audit?

FROM CNN's Jack Cafferty:

If you're scrambling to do some end-of-the-year tax planning, you might want to consider this:
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The Internal Revenue Service increased the number of returns it audited by 11 percent this year - that's according to the Associated Press.

The tax agency was most likely to target wealthy taxpayers and big businesses; but it also audited more charities and other tax-exempt groups.

In total - the IRS audited more than 1.58 million individual returns; up from 1.43 million the year before. Officials say it's the highest rate of individual audits in the last decade.

And, that translates to more than one percent of individual returns that were audited. But the richer you are, the more likely you are to get audited:

Those making more than $1 million had an audit rate of more than eight percent; and people making more than $200,000 had an audit rate of more than three percent.

As the country struggles to come up with a solution for our skyrocketing national debt, "tax reform" is a phrase we hear more and more often.

Undergoing an IRS audit is only a slightly bigger nightmare than making your way through our ridiculously complex tax code.

The problem with tax reform is there's a powerful lobby in Washington representing tax lawyers, accountants and money managers who will probably fight any effort at reform tooth and nail.

So for this year, you better get it right the way it is.

Here’s my question to you: Could you pass an IRS audit?

Tune in to the Situation Room at 6pm to see if Jack reads your answer on air.

And, we love to know where you’re writing from, so please include your city and state with your comment.