Overall, the IRS has audited 26% fewer corporations in 2004 than it audited in 2003, according to the latest figures obtained by the Transactional Records Access Clearinghouse. The figures cover the first six months of 2004.
Although the IRS is auditing fewer companies, the length of time the IRS spends auditing a small business has increased. (The IRS defines a small business as one with assets under $10 million.) The IRS has also increased the number of audits for mid-sized businesses (those with assets of $10- to $50-million).
