2011 marked the third consecutive year that the IRS increased its audit rate on individual tax returns showing income of more than $1 million, and the increase was pretty substantial. Nearly 12.5 percent of returns in this segment were audited, topping the previous record of 8.36 percent of returns in that category in 2010. The reason? A greater focus on income held outside the U.S. said Steven Miller, deputy IRS commissioner for services and enforcement. The audit rate also climbed for corporations with more than $250 million in assets. The IRS said it audited 27.6 percent of these businesses, up from 25.3 percent in fiscal 2010.
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