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Jul 18, 2009 
With the federal deficit topping a record $1 trillion and rapidly on its way to nearly doubling by this fall, the government desperately needs to squeeze out every tax dollar it can find. That could translate into more audits or at least a letter from the IRS politely asking you to refigure your taxes.
“You’re not going to find a document that says this, but it’s very clear that in a budget deficit, increased tax collection is another source of revenue,” said Ohio State University professor Bill Raabe, a federal tax expert. “It’s revenue that should be there that doesn’t come in.”
The IRS estimates that it fails to collect about $345 billion in taxes each year. The largest chunk of the uncollected portion comes from individual income taxes, which accounts for nearly $200 billion. That explains why you now have a one in 99 chance of getting audited when just 10 years ago it was a one in 202.
The IRS has made no secret of its plans to close that tax gap through beefed up enforcement and audits.
“In times when more revenue is needed and the tax gap widens, absolutely the IRS is going to step up audits,” said Jackie Perlman, a tax analyst for H&R Block’s Tax Institute, which provides research, analysis and interpretation of federal and state tax laws.
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