5 Things To Know About Getting Audited
(CNNMoney) — Now that your 1040 is out the door, you may be second-guessing yourself: Will the IRS come a-calling? Well, the number of audits has risen every year over the past 10. And experts expect that trend to continue, what with the ballooning federal deficit and the additional $400 million earmarked for tax enforcement in 2010. Even so, your audit risk in any one year is slim — about 1% if your income is under $200,000, 2% from there to $1 million, and 6% for the über-rich, based on 2009 data. Those selected tend to be self-employed or have unusually large write-offs, says Trudy Moore, an enrolled agent in Stevensville, Mont. If you do get hit this year, it’s likely to be for 2008 taxes: Audit letters typically go out 18 months after the filing date.