I have just read that the stats for individual audit tax return done during 2011 were the same as in 2010, 1.11% Now when you look more closely those numbers do change a bit. But, it is my understanding that these numbers do not include the hash audits that are preformed on most returns. These audit include those returns that have all third party reporting documents, W-2’s 1099’s and 1098’s. The numbers are reflective of an actual meeting with an IRS auditor.
The IRS has decided to go to where the money is at. Those with incomes above $200,000 had an audit rate of 3.93%. Those whom have $1,000,000 or more of income get even more scrutiny. One out of every eight returns are audited.
Those making under $200,000, audit impacted one in a hundred chance of a mail audit.
Also, there is more scrutiny on low income earners who claim the EIC. There is a growing concern that every one who claims the Earned Income Credit may not be eligible for it.