Interesting findings in a new study by the Transactional Records Access Clearinghouse, or TRAC:
- Just one in five large corporations (assets of $250 million or more) in the financial services industry were subject to IRS audit in 2002, 2003 and 2004.
- In 2004, only 0.65 percent of all corporations were subject to a face-to-face audit.
- The IRS refuses to release the number of total audit hours for corporate audits. (The information is available for individual audits.) This makes it impossible to know how much time the IRS is spending making sure corporations comply with tax laws.
This data suggests that that the administration has given large corporations, especially in the financial services industry, a hidden tax cut. Not only are the rates lower and the loopholes expanded, but enforcement has been relaxed.