According to mortgage data firm First American CoreLogic, there are 137,670 U.S. taxpayers who have mortgage balances above $1 million. For them, the IRS is on their side.

The IRS has concluded that a taxpayer can now deduct interest on the first $1.1 million of their home mortgage. That amount is $100,000 higher than earlier legal IRS findings would allow.

For example, the IRS memo states that a taxpayer who purchases a $1.5 million home and borrows an amount of $1.3 million, will be able to deduct interest on $1.1 million.

The IRS reasoning does seem logical. If one taxpayer is able to deduct interest on an additional $100,000 of home-equity debt, in addition to a $1 million first mortgage, then shouldn’t another taxpayer be able to deduct the full $1.1 million for their original purchase?

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As the news is saturated with greedy people who will go to no end to achieve their fortune, average taxpayers have had enough.

The Internal Revenue Service has reported that they have reduced income tax return audits on millionaires. The IRS claims to increasing their crack down on wealthy tax cheats, but an IRS watchdog group sees things differently.

The IRS does agree there was a “slight” decline in audits of millionaires but states a valid reason for the drop. Last year the agency says it was absorbed with focusing on sending out economic stimulus checks to taxpayers.

The numbers do speak for themselves. People with incomes of $1 million and higher had only a 5.6 percent chance of getting audited by the IRS in fiscal year 2008, which ended last September. According to IRS figures, this rate was down from 6.8 percent experienced the previous year.

The number of millionaires actually audited declined from 23,200 to 21,874. The number of millionaires who filed income tax returns increased from 339,138 to 392,776.

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