The chances of an income tax audit depend on several factors, not the least of which are the phase of the moon, the luck of the Irish and an ocassional four leaf clover. Of course there are other factors, like the size and nature of your income, and the accuracy of your return. Here are some general insights based on common audit triggers and audit rates:
General U.S. IRS Audit Rates in recent years?
Overall audit rate: <0.5% (less than 1 in 200 taxpayers).
High-income earners (>$1 million/year): ~2–5%.
Low to moderate-income earners: <0.3%.
Self-employed / small businesses (Schedule C): ~1–2% depending on income level.
Good luck, and stay under cover...
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Since the standard deduction went up with the Trump tax cuts, I've never had the need to itemize. It's not even close.
ReplyDeleteAuditing anyone like me would be a total waste of time.
Odds might be low of getting picked for an audit. But once you have one, you will "randomly" get selected for several years.
ReplyDeleteSpeaking from experience.
Mark in PA
"The chances of an income tax audit depend on several factors..."
ReplyDeleteOne sure way to get someone audited is to report a person for tax evasion for example and it can be done anonymously, sleep well...