What are the odds that IRS will audit me?

What are the odds that IRS will audit me?

The chances of an individual being audited are pretty small, but there are some red flags that could increase your risk.

Last year, the Service audited only 0.84% of all individual returns. But the chances of drawing unwanted attention from the agency increase with various factors:

• Taking higher-than-average deductions
• Writing of day trading losses on schedule C
• Underreporting income
• Running a small business
• Deducting rental losses or alimony
• Claiming 100% business use of auto
• Failing to report foreign accounts

Also, filers who are reporting higher income have a greater risk than low income filers.

 

If you have any questions about this or any other accounting related topic, please do not hesitate to contact us here at Shein & Wente CPA in Melbourne, Florida!

 

 

Information provided by The Kiplinger Tax Letter Vol. 91, No. 5