Top Cities Where IRS Expects Tax Cheats
Small-business owners among top targets: study
By Matt Cantor, Newser User
Posted Apr 15, 2013 9:31 AM CDT
The exterior of the Internal Revenue Service building in Washington, Friday, March 22, 2013.   (AP Photo/Susan Walsh)

(Newser) – A study is shedding new light on just who should most fear a federal tax audit. Small-business owners—who often deal in cash—are eyed more warily than others, says the report by the National Taxpayer Advocate, an independent office within the IRS. And location matters. According to secret data used in the report, sole proprietorships in the rich suburbs of Los Angeles are of particular concern, as are those in suburbs of San Francisco, Houston, Atlanta, and Washington, DC.

Many of the locations mentioned are very well-off, the AP notes; the IRS is more likely to audit higher-income people. Those who take huge deductions relative to their salary raise red flags, experts say. The businesses most likely to cheat, per the data: real estate and construction companies. Among the least likely: people in professional services, including lawyers, accountants, and architects. Meanwhile, people who live in Alaska's Aleutian Islands; West Somerville, Mass.; and the Bronx neighborhood of Mott Haven are among the least likely to cheat, researchers found.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Top Cities Where IRS Expects Tax Cheats is...
10%
62%
4%
8%
2%
14%
Show results without voting
You Might Like
Comments
Showing 3 of 11 comments
ppaca
Apr 15, 2013 8:22 PM CDT
0bama earned a reported $609,000 and reported $150,000 in donations. $103,000 of that supposedly went to Fisher House. However, he ended up paying a mere 18.4 % in taxes! That shows he does not truly believe in the co-called Buffett Rule. 0bama is such a hypocrite. Do what I say, not what I do!!!!!!!!!!
retrobeast
Apr 15, 2013 7:48 PM CDT
Of course in places like Michigan a new immigrant (usually from the middle east), gets to open a business and pay no State income tax for 7 years. Then they sell the business to a relative and keep paying no taxes. Look it up. Our government wants us citizens to fail and the others to succeed. What a joke. The world laughs as us day after day.
retrobeast
Apr 15, 2013 7:44 PM CDT
So we got rid of British rule because of taxes yes we do not fight back against the IRS? We have become a bunch of MF'in wimps.