Update Exhibit 12-2 for the most recent year and comment on any changes you see in audit activity over the past few years.

Transcribed Image Text:

EXHIBIT 12-2 Various Audit Statistics Type of Return Changes of Audit Individual Income Tax Returns 0.6% Nonbusiness returns with income under $200,000 (without earned income tax credit and without schedules C, E, or F or Form 2106) 0.2% Nonbusiness returns with income between $200,000 and $1 million 0.6% Business returns without earned income tax credit and gross receipts under $25,000 0.9% Business returns with income between $200,000 and $1 million 1.4% All returns (business and nonbusiness) with income of $1 million or more 3.2% Corporate Income Tax Returns (except Form 1120-S) 0.9% Small corporations with under $250,000 of total assets 0.4% Large corporations with over $20 million of total assets 49.3% Estate Tax Returns 8.6% Under $5 million gross estate 2.7% $10 million or more 31.0% Partnership Returns 0.2% S Corporation Returns 0.2% Source: Internal Revenue Service Data Book, 2018.