The IRS is after more money and they are looking for easy targets that they can work on. If you receive payments in cash or if you have a small business, then you can fall under their radar. However, you should be more worried if you live in an affluent neighborhood.
According to an article that appeared on rt.com, “The Internal Revenue Service only audits 1 per cent of tax returns each year and can yield greater taxes by targeting wealthy small business owners who might have underreported their earnings. As a result, the IRS is looking closely at small business owners in New Carrollton, Md., College Park, Ga., Beverly Hills, Calif., and Newport Beach, Calif. – suburbs that are home to wealthy and middle-class Americans, many of which are sole proprietors.These five metropolitan regions are more likely to host tax cheats than other neighborhoods.”
Though the IRS is denying that a person’s ZIP code can be a reason for an audit, evidence is showing the contrary.
You can check the full article here.