Who is likely to face a tax audit and who isn't?

Friday, April 01, 2016

From the Clark Howard website. Read the whole article here >

The IRS audit: Everyone dreads it and so few know how to handle it! Fortunately, the good news is that audits are less common in general because of a severe budget crunch at the IRS.

Bull's-eye target on the rich, the self-employed

With 25% fewer people on staff to do audits, the organization has really had to pick its battles. So the organization has modified who they go after. They used to beat up on taxpayers who didn't make much money in the past. But now they have to go where the money is.

In 2015, the IRS audited about one out of every 10 returns by people who made north of $1 million. That's up 2.5% year over year for the fiscal year ended Sept. 30, the agency said Monday.