The Internal Revenue Service reported that audits of individuals topped 1 million in fiscal year 2012 for the sixth year in a row, a coverage rate of 1.03 percent of all tax returns filed, while audits in the upper income ranges remained substantially higher than other categories.

The IRS noted that it increased its examinations across all categories of business returns by more than 12 percent in fiscal 2012, with the largest increases coming in audits of flow-through entities, which include partnerships and Subchapter S corporations. Coverage rates exceeded 20 percent for the largest corporations.

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