IRS audit rates drop again! Here are some numbers from 2017 to 2018:

Adjusted Gross Income           Returns Filed       Audit Rate (2018)(%)

All returns                                100.00                  0.59

No adjusted gross income         1.68                     2.04

$1 under $25,000                      35.59                     0.69

$25,000 under $50,000             23.65                     0.48

$50,000 under $75,000             13.44                     0.54

$75,000 under $100,000           8.66                      0.45

$100,000 under $200,000         12.41                     0.44

$200,000 under $500,000         3.72                       0.53

$500,000 under $1,000,000       0.58                      1.10

$1,000,000 under $5,000,000    0.25                       2.21

$5,000,000 under $10,000,000 0.02                       4.21

$10,000,000 or more                 0.01                       6.66

Here is a comparison of the major reductions in audit rates for those who make over $200,000 per year (from 2017 to 2018):

Adjusted Gross Income           2017 (%)               2018 (%)

$200,000 to $500,000               0.70                      0.53

$500,000 to $1,000,000            1.56                      1.10

$1,000,000 to $5,000,000          3.52                      2.21

$5,000,000 to $10,000,000       7.9                        4.21

$10,000,000 and Up                 14.52                    6.66