IRS Audit Facts

​The Internal Revenue Service audited only 0.84% of individual taxpayers in 2015, the lowest rate in a decade, according to data released by the agency. While the IRS still audits a far larger percentage of high-income taxpayers than lower earners, the audit rate among high earners shrunk more last year.  Here are the groups that are more likely to get the IRS’s attention:

Returns by income                                      Percent of total returns                                              Percent audited in 2015
All returns                                                                                         100%                                                                                0.86%
No adjusted gross income                                                            1.76%                                                                               3.78%
$1- $24,999                                                                                       38.51%                                                                               1.01%
$25,000- $49,999                                                                             23.23%                                                                               0.47%
$50,000- $74,999                                                                             13.13%                                                                               1.01%
$75,000- $99,999                                                                                8.42%                                                                               0.49%
$100,000- $199,999                                                                          11.15%                                                                               0.64%
$200,000- $499,999                                                                            3.08%                                                                               1.54%
$500,000- $1 Million                                                                          0.48%                                                                               3.81%
$1 Million- $5 Million                                                                        0.21%                                                                               8.42%
$5 Million- $10 Million                                                                      0.01%                                                                             19.44%
Over $10 Million                                                                                 0.01%                                                                             34.69%

Source: Internal Revenue Service Data Book, 2015
1. People who report more than $10 million in income—or none at all
In 2015, the IRS audited more than 34% of returns reporting more than $10 million in income. Another group with a higher-than-average chance of getting audited?  People who report no income. If you’re reporting an operating loss on your business, the IRS might double check that you’re being honest.
2. People who file estate tax returns for assets worth more than $5 million
The bigger the estate, the more likely the IRS flagged the return for an audit. More than 21% of estate tax returns with assets between $5 million and $10 million were audited in 2014, and 27% of returns with assets worth over $10 million were audited.
3. People who file international returns
Over the past several years, the IRS has increased scrutiny of international returns. In 2014, the IRS audited 4.8% of international returns.