If there are fewer than seven figures on your paycheck, it’s time to breathe easy. Research shows the IRS couldn’t be bothered by anyone short of a millionaire.
Filers earning more than $1 million were eight times as likely to be audited as the rest of taxpayers in 2011 and nearly three times as likely as those earning between $200,000 and $1 million, according to TurboTax.
In fact, just over 1 per cent of tax returns were audited at all –– that’s 1.5 million returns out of 140 million total.
Another myth that’s been debunked is the idea of a knock on the front door by way of an agency representative. The vast majority of individual audits are sent via snail mail rather than in-person visits (78% vs. 22%).
Read on to see how the auditing process really works.
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