We wanted to provide some information about something most people dread: IRS tax audits. Hopefully this post will help you relax and possibly avoid an audit.
Chances of an audit are very low – on average less than 1% are subjected to audit, those claiming $25K to $200K in income are audited at a rate of ~.5% and those below and above those income levels are at higher audit rates.
Sometime an audit can be positive – in 2015 the IRS gave an additional $1.1 billion in refunds to auditees.
Audits often happen much later – the IRS has 3 years to open an audit and can go back as far as six years where ‘substantial’ errors are detected.
Filing electronically decreases your risk – consider having a professional help you with this.