As first reported by Richard Rubin of Bloomberg: the IRS audited less than one percent of individual tax returns for 2013, declining for the second straight year, the lowest rate since 2005.

The IRS has lost $1 billion in funding and 8,000 employees over the past three years.  The IRS has less than 20,000 key enforcement positions, down 14 percent from 2010 peak.  Audit rates for all income groups declined in 2013; however those making over $1 million had an audit rate of nearly 11%, double the 2006 rate.  Fewer corporate and partnership audits were performed in 2013 also.

Taxpayers had more trouble reaching IRS personnel by phone; only 60 percent of those calling the toll free number were able to speak to an IRS Rep, the lowest since 2008.

House Republicans have proposed a $9 billion budget for fiscal 2014, down nearly $4 billion from the previous year.  Republicans have proposed other cuts in response to the IRS scrutiny of Tea party nonprofits last year.

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