What Are Your Chances Of An IRS Audit?

You Finished Your Taxes

You drove to the Post Office that was open till midnight, and mailed your return. For many years I did drive to the Post Office on Sherman Way in Van Nuys. Then, things changed and I started driving there on October 15th. You know the drill.

Now That You Have Sent In Your Return What Are Your Chances Of Audit?

Here are some statistics from our beloved Internal Revenue Service.

  •      Individual returns: 0.6% or 1 in 167 returns.
  •      Earned Income Credit: over 1%
  •      Sole proprietors: between 1% and 2.1%
  •      Between $200,000 and $1M and no Schedule C: 0.8% and with a Schedule C: 1.6%
  •      Millionaires: 4.4%, but that is a drop from 5.83%
  •      C Corps:  1% but income over $5M the rate is higher.


  •      Regular corps:  31% no changes after audit
  •      Individuals:   8% no changes after audit

It Appears That They Are Not Auditing Entire Returns Anymore

They will call on a certain item. There are some things that draw more scrutiny as mentioned above, earned income credit.

Also, IRS funds are being cut so they have fewer auditors. I sure hope that they have enough to catch the really bad scofflaws who steal from the government and then we have to pay more in taxes.

Noel Seaman, One Of The Top Duane Gomer’s Speakers Ever, Used To Say

That the “Use of Home as an Office Form” should be called the “I Would Like to Be Audited Form”. I have heard of many people who use the Real Estate as a Professional deduction being audited.

Now, when you are audited be nice. Also be prepared. But not too prepared, as you should not bring your whole file if they only ask for your medical expenses.

6 Responses to What Are Your Chances Of An IRS Audit?

  1. Gail Davis April 22, 2018 at 9:02 pm #

    Duane: It was the middle 90’s and the IRS was in the same building as the Santa Maria Assn. of Realtors. The four of us that we’re officers and CAR Directors at the time got audited. My CPA represented me, but told me it is better not to go and represent yourself because then they can’t be drilled. I don’t know what those would do if they did their own income tax.
    Gail Davis, Realtor Emeritus, GRI #00584079

    • Duane Gomer April 24, 2018 at 11:01 am #

      In my case I believe that I am a tax accountant. That is what I was before Real Estate so I go myself. I have always had great rapport with auditor including about four with IRS and two with FTB and a long one with The Sales Tax People. In all those cases the people were fine and pleasant and knew their specialty’s except for one supervisor.
      I found many times that CPA’s were too conservative and hurt people by not taking some deductions. I have some great people in the field with whom I speak and they are brilliant in their advice. But I have never done my own taxes even in the long ago when I was doing other peoples.
      Thank you for taking the time to read and comment. Miss doing seminars at the Association in Santa Maria and in that hotel over by the airport. Worked so many days with Jim Gray.

  2. Guadalupe Lopez Gurrola April 27, 2018 at 1:01 am #

    Come back to Santa Maria Ca.

  3. Douglas Graham January 5, 2019 at 5:24 pm #

    Noel Seamon was my outstanding tax attorney for many years. Great guy gone way, way too soon.

  4. LYNNE BIANCO January 14, 2019 at 10:36 am #

    I only got audited once. That was after I wrote a letter to President Nixon telling him I didn’t think taxpayers should have paid for an enclosure at his personal San Clemente home. That’s when he had his “Enemy’s List” which I guess I made through my letter. I had to go in for the audit but they could only squeeze $49 dollars out of me. Must have cost them $250 for letters, the auditor, and personnel’s time.

    • Duane Gomer January 15, 2019 at 3:25 pm #

      That is good; they sure lost money on you; they do not audit whole returns now, they look for certain aspects like Use Of Home For Office, Auto Expense, 1031 Exchanges, and me they got like many, Real Estate Professional.

      Keep in touch.


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