IRS Audit Statistics: Rates and Chances of Receiving a Tax Audit
The chance of receiving an audit generally changes based on 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 many factors 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 typical red flags are for an IRS audit or examination.
Total IRS Audits On Individual Tax Returns (Tax Years 2015-2018)
| Tax Year | 2015 | 2016 | 2017 | 2018 |
| Individual Total Returns Filed | 150,675,111 | 150,447,029 | 153,062,634 | 153,927,628 |
| Total Audits Closed & In Process | 870,665 | 769,842 | 662,782 | 370,432 |
| Percentage Audited in FY | 0.57% | 0.51% | 0.43% | 0.24% |
*Although the IRS data book 2020 and 2019 are out, the actual percentage of individual tax returns examined by the IRS for a specific tax year gets reported by the IRS two years later. Realize because of the 3-year statute of limitations, the percentage of returns audited will increase as other examinations are opened.
Tax Year 2018 IRS Audit Rates by Income Level for Individuals (Most Recent Data)
|
All Returns Filed for Tax Year 2018
|
Percentage of Returns Examined
|
|
| No adjusted gross income |
.447%
|
2.03%
|
| $1 - $24,999 |
32.07%
|
0.39%
|
| $25,000-$49,999 |
23.82%
|
0.21%
|
| $50,000-$74,999 |
14.11%
|
0.12%
|
| $75,000-$99,999 |
9.08%
|
0.11%
|
| $100,000-$199,999 |
14.34%
|
0.12%
|
| $200,000-$499,999 |
4.79%
|
0.12%
|
| $500,000-$999,999 |
0.81%
|
0.23%
|
| $1,000,000-$4,999,999 |
0.36%
|
0.62%
|
| $5,000,000-$9,999,999 |
0.02%
|
1.01%
|
| $10,000,000+ |
0.01%
|
5.32%
|
IRS Audit or Examination Statistics by Tax Filing Type for Tax Year 2018
|
Returns Filed for Tax Year 2018
|
Returns Audited
|
Percentage Audited
|
|
| Corporation (except 1120-S) | 1,553,945 | 4,442 |
0.29%
|
| S Corp | 5,106,459 |
3,182
|
0.07%
|
| Partnership | 4,010,200 | 1,335.00 |
0.03%
|
| Individual | 153,927,628 | 370,432 |
0.24%
|
Overall the odds that a taxpayer will get audited have decreased over the last few years. In fact, examinations are down compared to the previous year. Generally speaking, the IRS does audit individuals with higher income because the IRS has limited resources and they get justify 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.
