The IRS has increased it's audit rate amount by 11%. The wealthy and non-profits are getting most of this extra-attention.
"We saw individual audits increase, reaching the highest rate in the past decade," said Steve Miller, IRS deputy commissioner for services and enforcement. "The bottom line shows enforcement revenue topped $57 billion, up almost 18 percent from last year."
Update May 2017: When this article was published in 2010, we saw the high-water mark of tax audits. Since then, the IRS has lost nearly half of its Revenue Agents through attrition. Their replacements have not been hired.
While this is perhaps good news for the public at large, it is no so great if you are one of the few who is selected for an audit. The IRS has changed its focus from compliance to maximing penalties. A rigorous defense may be necessary.
They are now focusing their audits on offshore accounts, wealthy individuals, and corporations (both international and domestic).