Planners have taken note of the fact that clients with incomes of $1 million or more were twice as likely to be audited by the IRS in 2011 than they were in 2009. Several say they are taking steps in anticipation of still greater vigilance on the part of the agency.
“We’ve noticed a significant increase in the last couple of years in audits,” said Jeffrey Thomasson, founder of the second largest RIA in the country, Oxford Financial Group in Carmel, Indiana. “It’s causing the advisor community here in the Midwest to be much, much more intentional about the advice they give to clients in making sure everything is documented appropriately.”
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