AP Exclusive: Likely Tax Cheats Flock South, West
April 14, 2013 (Associated Press) WASHINGTON - Worried the Internal Revenue Service might target you for an audit?
You probably should be if you own a small business in one of the wealthy suburbs of Los Angeles.
You might also be wary if you're a small-business owner in one of dozens of communities near San Francisco, Houston, Atlanta or the District of Columbia.
A new study by the National Taxpayer Advocate used confidential IRS data to show large clusters of potential tax cheats in those five metropolitan areas. The IRS uses the data to target taxpayers for audits.
The study finds that people who own construction or rental real estate businesses may be more likely to fudge their taxes than owners of other types of businesses.
The National Taxpayer Advocate is an independent office within the IRS.