IRS to institute random audit program

"The IRS is paying particular attention to reporting of income, to wealthy people and especially to flow-through entities such as partnerships, S corporations (a domestic corporation of 100 or fewer shareholders) and trusts"

"An April 16 article in the New York Times said the IRS is auditing the middle class more often, It cited IRS data showing the audits for taxpayers earning between $25,000 and $100,000 nearly tripled to 436,000 taxpayers between 2000 and 2006. That is 1 in 140 taxpayers. One in 59 taxpayers with income over $100,00 are likely to be audited, as are 1 in 16 taxpayers with income above $1 million, the article said."

Complete article can be found here:
http://www.insidebayarea.com/business/ci_6590831