$Missed Deductions

How common are tax audits?

Filing Mistakesbeginner3 answers · 6 min readUpdated February 28, 2026

Quick Answer

Tax audits are rare, affecting less than 1% of all returns. In 2024, the IRS audited only 0.28% of individual returns overall, with rates varying by income level: 0.18% for incomes under $200,000 and 2.35% for incomes over $1 million.

Best Answer

DF

Diana Flores, EA

Individuals with typical income levels who want to understand their actual audit risk

Top Answer

How likely is it that you'll get audited?


The short answer: very unlikely. According to the IRS Data Book, only 0.28% of individual tax returns were audited in 2024 — that's roughly 1 in every 357 returns filed. For most taxpayers earning under $200,000, the audit rate was even lower at 0.18%, or about 1 in 556 returns.


Audit rates by income level


Your audit risk increases significantly with higher income levels, but even wealthy taxpayers face relatively low odds:



Why are audit rates so low?


The IRS simply doesn't have the resources to audit many returns. The agency's budget has been cut significantly over the past decade, reducing audit staff by about 35% since 2010. With roughly 160 million individual returns filed annually and limited personnel, the IRS must be selective.


What triggers higher audit risk?


While overall audit rates are low, certain factors increase your chances:


  • Very low or very high income: Those earning under $25,000 (often due to Earned Income Tax Credit claims) and over $200,000 face higher scrutiny
  • Self-employment income: Schedule C filers are audited at roughly twice the rate of W-2 employees
  • Large deductions relative to income: Claiming itemized deductions that seem disproportionate to your income
  • Cash-heavy businesses: Restaurants, car washes, and other cash-intensive businesses attract attention
  • Mathematical errors: While not technically audits, math mistakes trigger correspondence reviews
  • Missing forms: Not reporting 1099 income that the IRS already knows about

  • Example: Your actual audit risk


    Let's say you're a married couple filing jointly with $85,000 in combined W-2 income. You take the standard deduction and have no unusual circumstances. Your audit risk is approximately 0.11% — meaning if you filed identical returns for 909 years, you'd expect to be audited once.


    Even if you're self-employed with $150,000 in income and claim legitimate business deductions, your audit risk might increase to roughly 0.5-1% — still less than a 1-in-100 chance in any given year.


    What you should do


    Don't let audit fear prevent you from claiming legitimate deductions. The bigger risk is overpaying your taxes by being overly conservative:


    1. Keep good records: Maintain documentation for all deductions and credits

    2. File accurately: Double-check your math and ensure all income is reported

    3. Be reasonable: Don't claim questionable deductions, but don't skip legitimate ones either

    4. Consider professional help: If your situation is complex, a tax professional can help you file correctly while maximizing deductions


    Use our [return-scanner](tool) to identify potential missed deductions before filing, reducing both your tax bill and audit risk.


    Key takeaway: With audit rates under 0.3% for most taxpayers, you're far more likely to overpay taxes by being too conservative than to face an audit for claiming legitimate deductions.

    Key Takeaway: Tax audits affect less than 0.3% of returns annually, making them extremely rare for most taxpayers earning under $200,000.

    IRS audit rates by income level for 2024 tax year

    Income LevelAudit RateOdds of AuditNumber Audited (Est.)
    Under $25,0000.69%1 in 145276,000
    $25,000 - $50,0000.15%1 in 66752,500
    $50,000 - $75,0000.12%1 in 83330,000
    $75,000 - $100,0000.11%1 in 90922,000
    $100,000 - $200,0000.16%1 in 62548,000
    $200,000 - $1 million0.72%1 in 13943,200
    Over $1 million2.35%1 in 4311,750
    Over $10 million10.90%1 in 91,090

    More Perspectives

    RK

    Robert Kim, CPA

    Taxpayers who are concerned about audit risk due to mistakes on past returns

    If you've made filing mistakes, what's your audit risk?


    Having made errors on past returns doesn't automatically increase your audit risk for future years. The IRS computer systems flag returns based on current-year information, not your filing history — unless you're already under examination.


    Types of errors and audit implications


    Math errors are the most common mistake, affecting about 2-3% of returns annually. These trigger automated "correspondence audits" (letters requesting clarification), not full audits. The IRS simply corrects obvious calculation mistakes and sends you a bill or refund adjustment.


    Missing income is more serious. If you forgot to report a W-2 or 1099, the IRS will eventually catch this through their matching system and send a CP2000 notice. This isn't technically an audit, but it does require a response. About 4.5 million of these notices are sent annually.


    Claiming excessive deductions relative to your income can trigger scrutiny, but only if the amounts are significantly out of line with statistical norms for your income level.


    The amendment factor


    Filing an amended return (Form 1040-X) doesn't increase audit risk. In fact, voluntary corrections often reduce scrutiny because they demonstrate good faith compliance. However, if your amendment claims a large refund, it may receive additional review.


    What you should do


    If you've discovered errors on past returns:

    1. File amendments for significant mistakes: Generally worth it if the refund exceeds $1,000

    2. Don't amend minor errors: Small mistakes (under $100-200) often aren't worth the paperwork

    3. Keep better records going forward: Use our [form-explainer](tool) to understand tax documents before filing


    Key takeaway: Past filing mistakes don't increase future audit risk, and voluntary corrections through amendments often demonstrate good faith compliance to the IRS.

    Key Takeaway: Filing errors don't increase future audit risk, and voluntary corrections through amended returns often reduce IRS scrutiny.

    DF

    Diana Flores, EA

    Individuals with income over $200,000 who face higher audit rates

    Higher income, higher scrutiny


    If you earn over $200,000, your audit risk increases substantially but remains relatively low. At $200,000-$1 million in income, you face a 0.72% audit rate — about 1 in 139 returns. Over $1 million, the rate jumps to 2.35%, or roughly 1 in 43 returns.


    Why high earners get more attention


    The IRS focuses on higher-income returns because they yield more revenue per audit hour. A successful audit of a millionaire might recover $50,000-$100,000, while auditing a middle-income taxpayer might yield $1,000-$5,000.


    Special considerations for high earners


    Alternative Minimum Tax (AMT): High earners claiming large state tax deductions or exercising stock options face AMT scrutiny


    Passive activity losses: Rental property losses and other passive activities are closely examined


    Business ownership: If you own a business (especially cash-intensive), your audit risk increases significantly


    Charitable deductions: Large charitable contributions relative to income trigger review, especially non-cash donations over $5,000


    Managing audit risk


    Even with higher rates, most high earners are never audited. Focus on compliance rather than fear:

  • Maintain meticulous records for all deductions
  • Consider professional tax preparation
  • Be conservative with aggressive strategies
  • Respond promptly to any IRS correspondence

  • Key takeaway: High earners face audit rates of 0.7-2.4%, which while elevated, still means 97-99% of returns go unexamined each year.

    Key Takeaway: High-income taxpayers face audit rates of 0.7-2.4%, but even wealthy individuals have over a 97% chance of not being audited in any given year.

    Sources

    auditirsaudit ratestax compliance

    Reviewed by Diana Flores, EA on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.