IRS Audits

An IRS effort to boost audits of high income earners is producing results. Last year, IRS audited one in eight people earning at least $1 million. That's 12 percent. Only 5 percent to 7 percent of millionaires were audited in years leading up to 2010. The rate of audits fell for people earning less than $200,000. Last year, only one in 100 of them was audited. An IRS spokeswoman says the rising audit rate for high earners is simply because that's where the money is. She says it's not connected to President Obama's repeated calls for higher tax rates on millionaires and billionaires.