Mark Kohler breaks down IRS audit rates by income level. A decade ago, people earning over $1 million faced a 20% audit rate. Today it's dropped to 5%. The IRS still targets higher earners, but audits across all brackets have become far less common.
Chapters
Okay, Now, I will just say this in summary. Audits are down. Compared to 10 years ago, if you made less than 100 grand, you had a 1% chance of being fully audited. Ten years ago, it's now down to 0.25%. So it's one out of 400 people are going to get audited if you make less than 100 grand, if you make between 100,000 and a million. Ten years ago, you had a 3.5% chance of being audited. Now it's down to 1%. So again, about a 75% reduction. And if you make more than $1 million, your chance of an audit 10 years ago was 20%. See, the IRS is going where there's money. If they're. If they smell blood in the water, they want to do an audit where they're going to cash in. You know, auditing the little food vendor that makes ten grand a year. There's no money in that. That doesn't mean you can cheat on your taxes, people. All right? And then now that's down to 5%. So if you make more than a million dollars a year, you have a 5% chance. 5 out of 100 people will be audited anyway. But there's all sorts of facts and figures there. If you get. If you're bored tonight, you can go to the web and type in IRS 2020 data book and just enjoy that letter from the commissioner. It's a little love letter telling you how things are going, the status of the irs. I love that. That's interesting. I mean, there's no Britney Spears or billionaire involved in it, but some just good facts, some good info, just good core reporting. That's honest reporting there, man. Yeah. Just very fair and balanced. Yeah. I did not mess with the denominator in one. Yeah. Shape or form. Okay, okay. All right. The IRS gets the numerator and denominator, right? Yeah. Irs, they know their math. Yeah. The reporters, I don't know, they just. They're bloggers, glorified bloggers.