Global CPE webinar today - Stuart Sobel about EITC

[AZ-Tax]

Said 60% of all EITC are audited before refund is issued and credit is paid.
70% of the audited TP's do not respond to the IRS audit.
45% of all EITC claims are faudulent.

[Bees Knees]

I disagree with those percentages. According to the 2012 IRS Data Book (which covers 2011 calendar year tax returns), the number of individual income tax returns that claimed EIC with income under $25,000 was 25,554,339. The total number of those returns audited (either field or correspondence audits) was 531,802, or just over 2%. The total number of EIC returns with income of $25,000 or more was 1,722,772. The total number of those returns audited was 26,729 which is less than 2%.

Bottom line - claim EIC and you have a 2% chance of being audited, not 60%.

http://www.irs.gov/pub/irs-soi/12databk.pdf

[JohnH]

Could this issue hinge on the definition of the word "audited"?