When filing your annual tax return, the possibility of being audited is always looming. Audits feel scary, even when you know you haven’t done anything wrong. But what percentage of tax returns are audited each year?
The answer to this question varies based on income brackets, but the truth is not a lot of people get audited. However, the higher your income is, the greater your risk of an audit.
According to the IRS, if you make more than ten million annually, your audit risk is more than eight percent. But, if you make less than a million each year, your chance of an audit falls below one percent.
But, just because you haven’t been audited this year doesn’t mean you’re in the clear. The IRS can audit any return filed within the last three years, so hold onto all your tax returns for at least this long.
If you’re one of the unlucky few flagged for an audit, you don’t want to go it alone. Suppose you make an innocent error on your taxes but are found guilty of fraud because you didn’t have reliable representation to prove innocence. The penalties for tax fraud can include imprisonment and hefty fines.
Brightside Tax Relief can help you navigate the waters of an IRS tax audit. Contact us today at 1-800-730-4313 or fill out our online contact form, and someone will get back to you as soon as possible.