Did you make more than $1 million in 2012? Prepare for an IRS audit.
While the IRS said it examined just under 1% of all tax returns filed and about 1% of all individual income tax returns during 2012, the IRS examined 12.1% of the 337,477 tax returns reporting income of $1 million or more! “Overall, in 2012, individual income tax returns in higher AGI classes were more likely to be examined than returns in lower AGI classes,” said the IRS. In other words, the more you make the greater your chance for an audit. Read the full report and breakdown of audit rates per AGI classes.