Audit

AUDIT STATISTICS

Source- Internal Revenue Service

Forms 1040, 1040A, 1040EZ Percent audited in Fiscal 1996

Income of $25,000 to under $50,000 0.95

$50,000 to under $100,000 1.16

$100,000 and over 2.85

Schedule C (Sole Proprietorships)

Gross receipts under $25,000 4.21

$25,000 to under $100,000 2.85

$100,000 and over 4.09

Estate Tax Returns

Gross Estate under $1,000,000 7.85

$1 million to under $5 million 21.42

Over $5 million 49.33

IRS AUDITS ARE GOING DOWN: Expected 1998- 1.09%, down from 1.27% in 1997 and 1.67% in 1995 and 1996.

Forms 1040, 1040A, 1040EZ	Percent audited in Fiscal 1996
Income of $25,000 to under $50,000	0.95
$50,000 to under $100,000	1.16
$100,000 and over	2.85
Schedule C (Sole Proprietorships)
Gross receipts under $25,000	4.21
$25,000 to under $100,000	2.85
$100,000 and over	4.09
Estate Tax Returns
Gross Estate under $1,000,000	7.85
$1 million to under $5 million	21.42
Over $5 million	49.33