Audit Odds

What are your chances of being audited by the IRS?

The dreaded tax audit – some of us are more at risk than others. CPA Martin S. Caplan has the odds for us:

• If you make under $200,000 – you have about a 1% chance of being audited.

• $200,000 to 1 million – 3%.

• If you make over a million – the odds are doubled to 6%.

Your home office could be another red flag to the IRS. If you want to avoid an audit – consider making that space LESS than 20% of the total space in your home – or avoid declaring it all together.