IRS Audit Statistics: Rates and Chances of Receiving a Tax Audit
The chance of receiving an audit generally changes based upon income level and filing type. Below are IRS statistics that are broken down by individual, income level, and business type. These are the overall numbers provided by the IRS, but realize that there are many factors that go into determining if the IRS is going to audit. IRS audits are rarely random and can be avoided by understanding how the IRS audit process works and what the common red flags are for an audit.
Total Amount of IRS Audits on Individual Tax Returns
FY 2009 |
FY 2010 |
FY 2011 |
|
| Total Returns Filed Prior CY | 138,949,670 |
142,823,105 |
140,837,499 |
| Total Audits Conducted | 1,425,888 |
1,581,394 |
1,564,690 |
| Percentage Audited | 1.03% |
1.11% |
1.11% |
IRS Audit Rates by Income Level for Individuals (2009)
|
Percentage of Total Returns Filed
|
Percentage of Returns Audited
|
|
| No adjusted gross income |
2.13%
|
2.15%
|
| $1 - $24,999 |
40.51%
|
0.90%
|
| $25,000-$49,999 |
24.31%
|
0.72%
|
| $50,000-$74,999 |
13.44%
|
0.69%
|
| $75,000-$99,999 |
7.99%
|
0.69%
|
| $100,000-$199,999 |
8.69%
|
0.98%
|
| $200,000-$499,999 |
2.25%
|
1.92%
|
| $500,000-$999,999 |
0.43%
|
2.98%
|
| $1,000,000-$4,999,999 |
0.23%
|
4.02%
|
| $5,000,000-$9,999,999 |
0.02%
|
6.47%
|
| $10,000,000+ |
0.01%
|
9.77%
|
IRS Audit Rates/Statistics by Tax Filing Type FY 2011
|
Returns Filed (Prior Calendar Year)
|
Returns Audited
|
Percentage Audited
|
|
| Small Corporation |
1,931,008
|
19,697
|
1.02%
|
| Large Corporation |
59,291
|
10,459
|
17.64%
|
| Subchapter S |
4,444,154
|
18,519
|
0.42%
|
| Partnership |
3,434,905
|
13,770
|
0.40%
|
| Individual |
140,837,499
|
1,564,690
|
1.11%
|
Overall the odds that you are going to get picked for an audit is low each year. Generally speaking, the IRS does audit individuals with higher income
because they only have limited resources to go after people and they
get more bang for their buck going after the higher income individuals.
Higher income individuals are also more likely to have things on their
tax returns that create IRS red flags than individuals with lower
income. Considering the fact that you file a tax return each year and have about a 1% chance each year, it is more likely than not that you will get audited at some point in your life.