What Are My Chances of Being Audited and How Can I Reduce Them?

Although audits are relatively rare, as fewer than 1% of taxpayers grouped by income level will get that dreaded notice on IRS letterhead.   But don’t panic!

Per the linked statistics, for the average American who earned $50‒70K per year, only about half a percent of those tax returns got audited.  If you made between $25‒50K or between $75‒100K, less than half a percent of those returns were under audit.  Only 6.66% of tax returns reporting an eight-figure adjusted gross income were audited as well.  Additionally, the IRS has less funding and about one-third fewer agents on board compared to less than a decade ago, so this keeps audit figures down.