Thursday, June 2, 2016

Odds of Being Audited - Individuals

For anyone who has not looked through the IRS Data Book, I highly recommend it. It is packed with a ton of information.





As you can see, for 2014 of all the returns filed (192,000,000) only 0.7% were actually audited. However, actual audit chances are based on where your income is for the year. This table is from the IRS Data Book. The first column represents a persons adjusted gross income. The second column is how many returns were filed in that group divided by total returns filed. The last column shows how many returns were audited in that group.


So, if you had $10,000,000 or more of adjusted gross income, the IRS audited 34.69 percent of your group. The $50,000 to $70,000 group had the lowest chance of being selected at just 0.47 percent.


It is interesting to see such a high coverage on people who had no adjusted gross income.


All returns [4] 100.00                   0.84                  
No adjusted gross income [5]  1.76                   3.78                  
$1 under $25,000 38.51                   1.01                  
$25,000 under $50,000 23.23                   0.50                  
$50,000 under $75,000 13.13                   0.47                  
$75,000 under $100,000 8.42                   0.49                  
$100,000 under $200,000 11.15                   0.64                  
$200,000 under $500,000 3.08                   1.54                  
$500,000 under $1,000,000 0.48              3.81                  
$1,000,000 under $5,000,000 0.21                   8.42                  
$5,000,000 under $10,000,000 0.01                   19.44                  
$10,000,000 or more 0.01                   34.69                  

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