More taxpayers in Utah and nationally are getting audit notices these days as the Internal Revenue Service steps up its enforcement efforts to capture a greater portion of the taxes that are going un- paid.

It doesn't matter how much you earn, what you do for a living or if you ever have had a problem with your tax return before.

Chris Orrock, of Salt Lake City, was shocked to receive a letter from the Internal Revenue Service notifying him that his 2003 and 2004 returns were being audited. His fiancée, who like Orrock is a veteran flight attendant, also received an audit letter.

"I'm 51 and have never been audited in my entire life," Orrock said. "I sure would like to know what in my tax return bugged them - is it that I made some charitable donations? Is it because I'm a flight attendant? It sure would be nice to know."

It is important to note that only a small fraction of tax returns in any given year are audited. And the IRS has said that low- to middle-income taxpayers who honestly try to figure out their taxes each year should not worry about taking legitimate deductions or worry excessively about being audited.

But make no mistake.

"Audit rates are up, especially among higher-income taxpayers," said IRS spokesman Bill Brunson, who declined comment on any specifics concerning Orrock's tax situation.

In the IRS' last fiscal year, audits of individual tax returns increased by more than 20 percent from 2004, to 1.216 million - a seven-year high. Audits of people with incomes of more than $100,000 reached a 10-year high, while audits of small businesses and corporations as well. Commissioner Mark Everson has promised a continued high level of audits this year.

Some audits are as simple as the IRS asking for more documentation by mail and end not long after a taxpayer sends in the required documents. Others, though, involve face-to-face interviews and more-involved investigations by the IRS, and can lead to fines or even prison time.

Among individual taxpayers, the IRS is focusing enforcement efforts in a number of areas, including people with high incomes, those who use illegal tax shelters and other ways to cheat the system, and those who don't file at all, said North Salt Lake tax accountant Gail Anger, who worked at the IRS for 26 years.

But many others are receiving the dreaded notices, including those who have a high level of itemized deductions, such as charitable donations, and those in certain occupations.

Some accountants who have seen a marked increase in audits among their clients are even wondering if Utah - with its high levels of charitable donations among individual taxpayers - is an audit target right now.

Salt Lake City certified public accountant Troy Lewis, past president of the Utah Association of CPAs, said he knows of a number of accountants who are handling an increased number of audits. He said a number of taxpayers, especially those with high incomes, are worried because they know friends or family members who are being audited or have recently been audited.

This is exactly the type of buzz the IRS wants to create, he said.

"It makes people think twice about doing something they aren't supposed to do."

Bill Walpole, a Salt Lake City accountant who is Orrock's accountant, said he's still trying to figure out if any of his clients who are being audited have anything in common.

Walpole said his firm, Haynie & Associates, has seen audit rates among its clients jump dramatically in recent months. Several of his clients who are being audited are high-income individuals but a number are low- to moderate-income taxes, with one earning as little $20,000 last year. Many of those being audited do have a high level of itemized deductions, he said.

"That could be the common link," he said.

lesley@sltrib.com

This is one of a series of stories on taxes that will run in The Tribune between now and filing day, April 17.

Avoiding an audit

* Seek out competent advice. Ask for referrals from friends and family. Avoid tax preparers pitching something that sounds too good to be true. There are legitimate tax-planning and tax-reduction schemes but many more that are illegal.

* If you are preparing your tax return yourself with software, carefully answer questions - one wrong answer could skew a return.

* Document everything. Keep good, organized records to back up each year's return. In the event of an audit, it will be easy to respond to the IRS quickly and thoroughly.

Source: Salt Lake City CPA Troy Lewis, past president of the Utah Association of CPAs