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Tax depot is one of the most stressful things we have to do every year. Now that you are almost certainly on the other side, you probably push a sigh of relief and put the test of your mind until next year's tax season. But this calm can quickly be disrupted by a sudden letter from the Internal Revenue Service (IRS) informing you that you have been selected for an audit. Wondering how worried you should be worried about? IRS data can actually tell us a little about the probability that you are audited.

In relation: The IRS warns that the complaint of these credits can provide you with audit and a fine .

As the IRS explains On his website , an audit is "the [or] examination of examination of the accounts and financial information of an organization or an organization to ensure that the information is properly indicated in accordance with tax laws and to verify that the amount declared tax is correct. "

It is a real concern for many: a 2021 survey Since the IRS has noted that 60% of taxpayers have said that the fear of an audit is a major reason to be honest in their income statements.

Concerns can be even more widespread now, after the IRS promised that it would start to increase the Number of audits It leads to high income employees with financing of the law on the reduction of inflation.

"The nation is based on the IRS to collect the financing of each critical government mission, the security of our sky, our security and our homeland. It is essential that the agency deals with the fundamental shortcomings of the fiscal compliance which has increased in the last decade "" commissioner of the IRS Danny Werfel said in a press release at the time. AE0FCC31AE342FD3A1346EBB1F342FCB

Werfel continued: “There is a sea change that takes place at IRS in all aspects of our operations. Anchored by a deep respect for taxpayers' rights, IRS deploys new resources to advanced technology to improve our visibility on the place where the rich shield their income and the focus on the areas of the greatest abuse . The steps are essential for the future of the country's tax system. ""

In relation: 6 tax errors that could make you audited, according to financial experts

But to what extent should you worry if you are not ultra-rich? Probably not very.

The latest data available from the IRS indicate that your chances of being verified are not so high. For the 2012 tax year, only 0.8% of individual income declarations were selected for an audit, according to the IRS 2022 data book . This rate has dropped since, with only 0.2% of individual income declarations being verified in total for the 2020 taxation year.

Your probability may be a little lower or higher depending on your reported income. Those who earn $ 10 million or more are the most likely to be verified, because 2.4% of these yields were faced with an audit in 2020.

Based on income, the next highest are those which earn between 5 million and $ 9.9 million, at a rate of 0.7. Taxpayers who earned between $ 500,000 and $ 999,999 and $ 1 million to $ 4.9 million had the same probability of being checked: 0.4%.

But if you have declared an income from $ 1 to $ 25,000 in 2020, your chances of being checked were also 0.4%. Meanwhile, those who earned between $ 25,000 and $ 49,999, or $ 200,000 at $ 499,999, were both verified at a rate of 0.2% that year.

Finally, those who fall in the middle had the lowest chances of being verified. If your income fell into one of the three groups - $ 50,000 at $ 74,999; $ 75,000 at $ 99,999; Or $ 100,000 at $ 199,999, your probability of being selected for an audit in 2020 was only 0.1%.

In relation: Taking these 2 deductions could make you audited by IRS, warn the experts .

The income reported is not the only thing that facilitates the probability that you should be checked. After those who earn $ 10 million or more, the second most likely group to be checked in 2020 was those who claimed the income tax credit (EITC).

The EITC is generally used to "help workers and families with low to moderate income to obtain tax relief" by reducing the taxes they owe or by increasing their reimbursement, According to the IRS . To legally claim this credit, you must meet several Specific qualifications .

But Eligibility rules For the EITC, the EITCs were called "complicated" by the National Taxpayer Advocate Service (CAS), which may explain the higher audit rate. Theirs States on its website That when your return is audited for an EITC complaint, this may be due to the fact that your child is not eligible or that another person has claimed the same child.

There is also Several other errors which are generally manufactured with the EITC, which, according to IRS, is important for taxpayers to know so that they can avoid them and potentially avoid an audit.

"You are responsible for what is happening in your income tax return even when someone else prepares it for you," warns the agency.

The best life The most up -to -date financial information of the main experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.