What Can Raise the Chance of an IRS Audit
Your audit risk can depend on what’s on your return, and on factors outside your control.
Your Return Looks Different From Similar Returns
Computer screening compares your return to “norms” for similar returns. Numbers that stand out can raise the chance of review.
Random Selection
Some returns are chosen at random, even when everything on them is accurate.
Dealings With Another Audited Taxpayer
Your return may be selected if it involves transactions with taxpayers whose returns were selected, such as business partners or investors.
Claiming the Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a credit for some working people. Returns claiming it have historically faced higher-than-average audit rates. If you’re self-employed, learn how EITC works with business income before you claim it.
Very High Income
According to the IRS Data Book, as of the end of fiscal year 2025, the IRS had examined 0.36% of all individual returns filed for tax years 2015–2023. For returns reporting total positive income of $10 million or more, that figure was 7.9%.
IRS Notices That Are Narrower Than an Audit
Some IRS letters propose a fix without a full audit. Payers report your income to the IRS on informational forms that report W-2 information (wages from a job) and 1099 information (other income, such as freelance pay). The IRS compares the information reported on those forms and Form 1098 (mortgage interest) to what you report on your return.
| Notice | Why you might get it | What it means |
|---|---|---|
| CP2000 | Income the Payer reported doesn’t match your return | A proposed adjustment to your income, payments, credits or deductions. It isn’t a bill. Respond by the date listed. |
| CP11 | Your return had a math error | The IRS corrected the mistake, and the amount you owe changed. |
If you get a CP2000, learn what the notice means and how to respond.
How an IRS Audit Works
The IRS notifies you of an audit by mail. The IRS will not start an audit by phone. It normally first contacts you by U.S. mail and emails only if you’ve opted in. A social media direct message is never from the IRS.
| Audit type | Where it happens |
|---|---|
| Mail audit | Handled through the mail |
| Office audit | In person at an IRS office |
| Field audit | At your home, business or accountant’s office |
About 89% of individual audits closed in fiscal year 2025 were by mail (393,767 of 441,578), per the IRS Data Book. For EITC audits, 92,817 of 93,857 were handled by mail.
How Long the IRS Can Look Back
The statute of limitations is the time limit the IRS has to assess, or add, more tax. Most audits cover returns filed within the last two years and usually don’t go back more than six years.
| Situation | Time limit |
|---|---|
| Most returns | Generally 3 years after the due date (including extensions) or the date you filed, whichever is later |
| False or fraudulent return, or no return filed | Unlimited |
How to Keep Your Records Audit-Ready
Because the IRS can look back years, individuals and businesses should maintain records used to prepare tax returns. You can use any system that clearly shows income and expenses.
- Keep records that support each item on your return.
- Keep the records you used to prepare your return for at least three years.
- Keep records for six years if, for some reason, you didn’t report income that’s more than 25% of the gross income on your return.
- Keep them indefinitely if you don’t file a return.
Sources
- IRS, IRS audits
- GAO, Tax Compliance: Trends of IRS Audit Rates and Results for Individual Taxpayers by Income
- IRS, SOI Tax Stats - IRS Data Book
- IRS, Topic no. 652, Notice of underreported income – CP2000
- IRS, Understanding your CP11 notice
- IRS, How to know it’s the IRS
- IRS, Time IRS can assess tax
- IRS, Recordkeeping
- IRS, How long should I keep records?
