Increased audits of wealthy paying off

More corporations and wealthy taxpayers had their tax returns audited by Internal Revenue Service examiners this year, helping the agency haul in a record $47.3 billion in unpaid taxes.

IRS Commissioner Mark Everson said the audit rate of high-income individuals and families, those who report earning $100,000 or more, is “still too low.”

The IRS audited 1 in 63 wealthy individuals and families, a figure the agency said marked the highest rate in 10 years. By comparison, about 1 in 117 taxpayers who earned less than $100,000 were audited.

Overall, about 1 out of every 107 individuals faced an audit, more than last year when about 1 in 129 taxpayers had their tax returns examined.

The record amount collected this year includes nearly $4 billion garnered through a settlement with taxpayers who used a tax shelter designed to hide unusually large income gains.

Environmental council honors auto dealer

Spokane auto dealer Chris Marr will be named a “backyard hero” by the Washington Environmental Council in a ceremony in Seattle tonight.Marr, who’s managing partner of the Foothills Auto Group, took “a courageous stand in support of a piece of legislation,” the environmental group said in a press release. The legislation brings to Washington a version of California’s auto emissions rules for new cars, starting in 2009.

It was opposed by most auto dealers, but Marr appeared in a TV commercial supporting the legislation. He said at the time that “there are probably people who view me as a bit of a traitor.”

The environmental council said Marr’s action helped dispel “old stereotypes of an ‘either/or’ world.”

Northwest Farm Credit’s earnings drop

Northwest Farm Credit Services of Spokane announced third-quarter earnings of $20.8 million Thursday, a 17 percent decline from earnings of $25.6 million for the third quarter of 2004.

A key factor, said a company press release, was the decision in this past quarter to place $1.3 million in reserve for loan losses. One year earlier the bank removed $2 million from reserves.

For the first nine months of the year the bank reported net income of $64.99 million, compared with net income of $69.11 million from the same period in 2004.

Northwest Farm Credit Services provides financing to farmers, ranchers, commercial fishermen, timber producers and rural homeowners across the Inland Northwest.