IRS Audit Statistics: Rates and Chances of Receiving a Tax Audit (2021 IRS Databook)
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. The IRS generally provides examination coverage data for tax returns filed 2 years ago. Therefore, the most recent data is for the 2019 Tax Year.
Total IRS Audits on Individual Tax Returns (Tax Years 2016-2019)
| Tax Year | 2016 | 2017 | 2018 | 2019 |
| Individual Total Returns Filed | 150,447,029 | 153,062,634 | 153,927,628 | 157,951,815 |
| Total Audits Closed & In Process | 788,090 | 702,574 | 493,913 | 341,845 |
| Percentage Audited in FY | 0.52% | 0.45% | 0.32% | 0.22% |
*Although the IRS data book 2021 and 2020 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. For example, the 2016 IRS audit data showed an average audit rate of .52% for individual tax returns when previously it was .51%.
Tax Year 2019 IRS Audit Rates by Income Level for Individuals (Most Recent Data)
Here are recent statistics on IRS audit statistics for the 2019 tax year. The 2nd column represents what percent of tax returns filed make up each income level. The 3rd column, or Percentage of Returns Examined, illustrates for each income level, what percentage of returns were audited.
| Income Level |
All Individual Returns Filed for Tax Year 2019
|
Percentage of Returns Examined
|
| No adjusted gross income |
.52%
|
0.78%
|
| $1 - $24,999 |
31.19%
|
0.37%
|
| $25,000-$49,999 |
24.04%
|
0.18%
|
| $50,000-$74,999 |
14.33%
|
0.11%
|
| $75,000-$99,999 |
9.18%
|
0.10%
|
| $100,000-$199,999 |
14.46%
|
0.12%
|
| $200,000-$499,999 |
4.92%
|
0.10%
|
| $500,000-$999,999 |
.82%
|
0.30%
|
| $1,000,000-$4,999,999 |
.36%
|
0.60%
|
| $5,000,000-$9,999,999 |
0.03%
|
1.02%
|
| $10,000,000+ |
0.02%
|
2.01%
|
IRS Audit or Examination Statistics by Tax Filing Type for Tax Year 2019
|
Returns Filed for Tax Year 2019
|
Returns Audited (in-process and closed)
|
Percentage Audited
|
|
| Corporation (except 1120-S) | 1,522,958 | 4,395 |
0.29%
|
| S Corp | 4,940,351 |
3,182
|
0.06%
|
| Partnership | 4,512,292 | 1,335.00 |
0.05%
|
| Individual | 157,951,815 | 341,845 |
0.22%
|
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 can financially 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.