In order to raise more tax money, the Government Accountability Office (GAO) has told the IRS to concentrate on the following types of taxpayers for audits:
- Schedule C - self employed individuals
- Partnerships and S-Corporations including S corporation shareholders who work in the business and fail to pay themselve reasonable salaries.
- Famers who only do it part time
- Individuals who claim large amounts of medical deductions, charitable contributions and job-search expenses
- Taxpayers who do not correctly report sales of investments.
The GAO has identified these taxpayers as the most likely to misreport taxable income on their tax returns.