Americans stress over tax season, especially over fears of audits. Soon, the IRS will hire even more people.
As the IRS plans to bolster its staff, many are worried it means their chances of being audited are increased.
While less than 1% of all tax returns are audited, the added staff may have a better chance to double check more tax returns.
Right now, the small number of audits are done because of the issue of understaffing.
This means more staff could do more audits on higher income earners.
There are only 6,500 agents to audit high income taxpayers right now, so this has worked out in taxpayers’ favors.
For earners making over $1 million, audits dropped by 75% in that time period.
Will more staff increase my chances of being audited?
Most people fear audits, when in reality many are completed right through the mail.
As long as you were honest about your income and with documents you provided in your return, there is nothing to worry about.
If you earn an average wage, your chances of being audited are far less than a high earner.
To avoid being audited, make sure you report every cent you earned to the IRS.
In addition, make reasonable deductions to avoid raising red flags.