Ajay Kumar, CPA


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IRS Audit Probability

IRS audited over 1 million tax returns for the fiscal year 2016. The audit coverage rates differ based on the income, and the percentage of returns audited generally increases as income levels rise. Greater levels of income often come with more and larger deductions and credits, which can add complication to the return and thus raise the profile for audit. The table below reflects a summary of these audit rates as they compare with the percentage of returns that were audited during the prior fiscal years.

Type of Tax Return AuditedFY-16FY-15FY-14
All individual tax returns0.70%0.84%0.86%
Individuals reporting income over $1 million5.80%9.55%7.50%
Individuals reporting income over $200,0001.70%2.61%2.71%
Partnership tax returns0.40%0.51%0.43%
S corporation tax returns0.30%0.40%0.36%
Large corporation tax returns9.50%11.15%12.23%

Again, a reminder that IRS does not, and will not, ask for credit card numbers over the phone, nor request a pre-paid debit card or wire transfer. If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don’t pay immediately, that is a sign that it really isn’t the IRS calling. If you know you owe taxes or you think you might owe taxes, call the IRS at 800-829-1040 to understand your tax liability or let me know…

Ajay Kumar, CPA

 5 Villa Farms Cir;
Monroe Township,
New Jersey 08831, U.S.A.

Contact us

Email: akumar@saicpaservices.com, saicpaservices@gmail.com 


Cell: 908-380-6876
Fax: 908-368-8638