Tax season finally came to a close on Monday after some extensions. While the end of tax season usually means the weight is lifted from many American’s shoulders they can also relax knowing their chances of being audited by the IRS have significantly decreased as well. Keep reading to find out why!
The agency audited just 0.45% of individual tax returns in fiscal 2019, according to a recent Treasury Department report, or roughly 1 out of every 225 individual returns. Nearly half of those returns belonged to filers who claimed the Earned Income Tax Credit.
The data shows that out of more than 199 million tax returns in 2019, the IRS only examined 771,095 returns. That’s a decline of 44% from fiscal year 2015.
The decline in audits is largely due to dwindling funding and enforcement staff: The IRS has 20,000 fewer staff than it did in 2010, and its budget is roughly $11.4 billion – 20% less than it was in 2010, when adjusted for inflation, according to the Congressional Budget Office.
About $1 trillion in federal taxes may be going unpaid each year because of errors, fraud and a lack of resources to adequately enforce collections, IRS Commissioner Chuck Rettig said in April while testifying on Capitol Hill.
Keep reading at Fox Business for more.