Guiding You Through The Legal Process
View Our Practice Areas

Audits continue to decline at IRS

When Georgia residents file their taxes, they may be concerned about the threat of an audit by the Internal Revenue Service. The thought of an auditor going through receipts, paperwork and pay stubs can be enough to make any taxpayer nervous. However, statistics show that tax audits are less likely than they have been in years. The budget of the IRS has been cut repeatedly since 2011; at that time, it had a budget of $12.1 billion annually. In 2017, that figure was down to $11.2 billion. During the intervening years, the agency lost one-third of its personnel dedicated to enforcement.

In 2017, the IRS processed 245 million tax returns, selecting 0.6 percent, or 934,000 returns, for audits. This is the sixth year in a row that audits have declined. Furthermore, they have reached their lowest level since 2003. In addition, wealthy Americans are also less likely to be audited. In 2015, 9.5 percent of returns citing household income of over $1 million each year were audited. That rate fell to 4.3 percent last year. The 2017 rate of millionaire audits was the lowest reported since the agency began tracking the figure in 2004.

However, filers who make $1 million or more are more likely to face an audit than the average American. Those making $200,000 or less each year were only 0.6 percent likely to be audited after filing their tax returns in 2017. But self-employed filers were more likely to face audits. People reporting no income at all were also more likely to be scrutinized -- 3.3 percent of these individuals were audited.

Despite the lowered frequency of tax audits, the Internal Revenue Service can impose a significant burden on a person or business as well as the fear of real penalties. A tax law attorney can help someone defend themselves in case of an IRS audit.

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Contact Us Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office

100 Galleria Parkway SE
Suite #480
Atlanta, Georgia 30339

Toll Free: 800-765-2779
Phone: 404-841-6561
Map & Directions

600 University Park Place
Suite 100
Birmingham, AL 35209

Phone: 205-401-1229
Map & Directions