Don't get complacent...resurgence is underway
The IRS reported audit rates continue to be low...very low. But that is now changing with thousands of auditors being hired for a post-pandemic scale-up of their reviews.
So don’t get complacent. A closer look at the IRS data release reveals some audit pitfalls you should know about.
Audit Rate Statistics for Individuals
Source: IRS Data Books with 2019 audit figures updated through May 26, 2022
Always retain your tax records and supporting documents for as long as you need them to substantiate claims on a return. The IRS normally has a window of three years from the filing date to audit a return, but this can be extended if the agency believes there’s any fraudulent activity.
If you receive an audit letter from the IRS, it’s best to reach out for assistance as soon as possible.
"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
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Mia Verc, CPA; Janice Papais, CPA
To better serve our clients and friends, to keep you up-to-date and informed, our blog is a resource for tax tips and overall accounting related articles. We hope you find this useful!