Audit focus shifting

The rate at which the Internal Revenue Service audits Americans with more than $10 million in income increased to nearly 30 percent in 2011, compared to 18 percent in 2010.

Similarly, 12 percent of those with incomes between $1 million and $5 million were audited, up from 7 percent the previous year. The IRS has been turning more of its attention to scrutinizing the wealthy as it seeks to target Americans who shelter income abroad and employ other tax dodges. The agency investigated the tax situations of 21 percent of people with incomes between $5 million and $10 million, showing that the percentage increases as incomes do.

When looked at as a whole, IRS documents reveal that only about 1.1 percent of taxpayers were audited in 2011, close to the previous year's percentage. Experts suggest that the changes in focus are motivated by a desire to maximize efficiency and revenues, CNN Money reports. Auditing high earners tends to gather more for the federal government. Experts note that returns typically become more complicated for those who earn more, making mistakes increasingly likely and creating additional opportunities for confusion, discrepancies and questions to arise.

These individuals are more likely to have different income sources and types of accounts, as well as to itemize deductions and take various tax breaks. Those in the middle-income spectrum are the least likely to be audited, according to the IRS data, while Americans who report no adjusted gross income or who make less than $25,000 are actually more likely to be the subject of an audit in comparison. Day traders may find themselves more likely than average to be scrutinized, since their income can stand out from more typical wage-earning.