Your Odds of an IRS Audit Are Lowest in Years

by William White | April 14, 2014 2:36 pm

The odds of getting hit by an IRS audit are the lowest in years[1].

NewLetters Your Odds of an IRS Audit Are Lowest in Years[2]
Source: mailto:letters@investorplace.com

According to RT, those making less than $200,000 only have a .88% chance of facing an IRS audit. This number increases for those who make more, with earning over $1 million having an 11% chance to be audited. However, this is the lowest chance of being audited since 2010.

The chance of getting an IRS audit drops even further[3] if you have a business that deals mostly in cash.

The reason that the odds of being hit with an IRS audit are down is because the agency doesn’t have the budget to hire more people. Since 2010, the IRS has had its budget decreased from $12.1 billion to $11.3 billion. President Barack Obama has announced a plan to increase the agency’s budget by 10% but it has been blocked by Republicans following scandals and because the IRS has to help implement Obamacare, RT notes.

The opinions contained in this column are solely those of the writer.
 
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Endnotes:
  1. the lowest in years: http://rt.com/usa/tax-irs-audit-chance-lowest-424/
  2. [Image]: http://investorplace.com/wp-content/uploads/2012/11/NewLetters.jpg
  3. drops even further: http://www.bizjournals.com/memphis/blog/2014/04/one-big-reason-you-probably-wont-be-audited.html
  4. Tax Day Freebies 2014: Special Offers for April 15: http://investorplace.com/2014/04/tax-day-freebies-2014/
  5. IRS: There’s a New E-Mail Tax Scam Around: http://investorplace.com/investorpolitics/irs-tax-scam/
  6. 3 Last-Minute Tax Tips: http://investorplace.com/2014/03/last-minute-tax-tips/

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