Just in time for Halloween: Few things spook my clients more than an audit. This just in from the IRS website: The rates of audits based upon income levels.
** Returns that show no total positive income report zero or negative income. The negative income could be negative business income and/or capital losses. Returns with no TPI are filed by taxpayers in any of the income categories, and there is no prevalence of one over the other. These returns account for less than 0.5% of the individual filing population.
From IRS: IRS Audit Rates Significantly Increase as Income Rises