Individual Audit
Tax & AccountingMarch 09, 2021

Audit Statistics – Individual Tax Returns

Individual Audit Data

 

INDIVIDUAL RETURNS FIELD PERCENTAGE AUDITED
  FY2019 FY2018
Total Individual Tax Returns  0.4%  0.6%

 TPI < $200,000

  • 1040 without Schedule C, E, F, Form 2016 or Earned Income Tax Credit **
0.1%
0.2%

TPI < $200,000

  • 1040 without Schedule C, F or Earned Income Tax Credit; with Schedule E or Form 2106***
0.6% 0.8%
TPI $200,000 < $1 million, non-business returns 0.4% 0.6%
TPI $1 million or more 2.4% 3.2%

TPI= Total Positive Income

 

 

FORMS FILED BY SELF-EMPLOYED INDIVIDUALS (SCHEDULE C) PERCENTAGE AUDITED
FY2019 FY2018
TSch. C TGR < $25,000 0.6% 0.9%

TSch. C TGR $25,000 < $100,000

0.8%
0.9%

Sch. C TGR $100,000 < $200,000

1.6% 2.4%
Sch. C TGR $200,000 or more 1.4% 1.9%


TGR=
Total Gross Receipts; does not include returns with Earned Income Tax Credit.

 

*Data is from returns filed in calendar year 2017 and 2018, and is the most current available.

**Includes individual tax returns filed without a Schedule C (nonfarm sole proprietorship); Schedule E (supplemental income and loss); Schedule F (profit or loss from farming); or Form 2106 (employee business expense).

***Includes individual tax returns filed with a Schedule E (supplemental income and loss) or Form 2106 (employee business expenses) but without a Schedule C (nonfarm sole proprietorship) or Schedule F (profit or loss from farming).

 

Source: Wolters Kluwer CCH® AnswerConnect, 2021
Permission for use granted.

Mark Luscombe
Principal Federal Tax Analyst
Mark Luscombe, a CPA and attorney, is the principal federal tax analyst for Wolters Kluwer Tax & Accounting. He is the current chair of the Important Developments Subcommittee of the Partnership Committee of the American Bar Association Tax Section and speaks on a wide range of tax topics. He authors monthly columns in Accounting Today and TAXES magazine. Prior to joining Wolters Kluwer, he was in private practice with several Chicago-area law firms where he specialized in taxation.