IRS audits not only help collect owed taxes but also serve as a deterrent against fraud. Taxpayers often cite the fear of being audited as a reason for honesty. The IRS plans to increase audits on high-income taxpayers to crack down on tax dodgers. However, the chances of being audited are very low, with only 0.2% of tax returns facing audits.
IRS Audits help the agency collect money that tax cheats owe the federal government, but experts say they also serve another important purpose: They help deter fraud.That can cause some serious agita, of course. The IRS says about 6 in 10 taxpayers cite the anxiety of getting audited as a motive for being honest on their taxes.
For instance, a married couple filing jointly with three kids and less than $63,398 in income can claim the maximum EITC amount, at $7,430. But the most a single taxpayer with no kids can claim is $600. EITC returns can get flagged if the IRS' records show the taxpayer doesn't qualify for all or some of the credit, such as claiming a child who isn't actually eligible .
IRS Audits Tax Cheats Fraud Deterrence Anxiety Revenue Tax Dodgers High-Income Taxpayers Audit Chances
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