David Burnham and Susan B. Long, co-directors of the Transactional Records Access Clearinghouse at Syracuse University have spent many good years tracking the relationship between U.S. government and corporations.  They have a new report out today.

"Greetings -- New IRS data show far fewer agency audits aimed  at large corporations providing investment advice, various kinds of banking and credit services and insurance than to corporations in other businesses. The big disparities -- documented in previously undisclosed data obtained and analyzed by the Transactional Records Access Clearinghouse (TRAC) -- concern corporations with $250 million or more in assets.  At one extreme  are the corporations providing financial services where less than one in five were audited in FY 2002, 2003 and 2004. At the other extreme are the corporations involved in either agriculture, mining and construction, or heavy manufacturing and transportation. Here, 100% were audited.

Considered as a whole, the corporations with $250 million or more in assets are a major force in the economy, controlling 90% of all corporate assets and 87% of all corporate income. Despite their dominant role, however, the new IRS data document that on an overall basis only about one in three were audited.

Other data show that despite recent IRS claims that it is vigorously enforcing the tax laws, the audit rate for all corporations has continued to decline along with the face-to-face audits of wealthy taxpayers.

To see TRAC's IRS press advisory go to http://trac.syr.edu/media/

David Burnham and Susan B. Long, co-directors
Transactional Records Access Clearinghouse
Syracuse University
488 Newhouse II
Syracuse, NY  13244-2100
315-443-3563
trac@syr.edu
http://trac.syr.edu