“Americans filing their tax returns from Israel are being audited by the U.S. Internal Revenue Service with a frequency that industry professionals have never seen before, according to several certified public accountants. While some of the accountants are not convinced Americans living in Israel are being singled out for audits more than other Americans living abroad, some maintain that the IRS has given indications it will pay more attention to Israel, Hong Kong and Singapore. All are cautioning filers to take note of a new ‘vigilance’ among U.S. tax authorities less than two months before the June 15 filing deadline for taxpayers living outside the U.S.”
http://www.haaretz.com/weekend/anglo-file/irs-ramps-up-audits-of-taxpayers-in-israel-1.426788