Retired in America

Your Guide to a Confident Retirement

  • Home
  • Personal finance
  • Retirement Life
  • Saving & Spending

12 Common Tax Mistakes That Could Lead to an IRS Audit

February 4, 2021 · Saving & Spending

What are the chances of getting an IRS audit? More importantly, what are YOUR odds? A lot of people ponder this question come tax season, and some might have legitimate grounds for concern. But the truth is that the odds are in your favor.

Only 0.4% of all individual tax returns were audited by the IRS in 2019 alone. Of those, 80% of exams were conducted by mail, so very few people actually met with an IRS agent face to face.

Given the coronavirus pandemic, it’s likely that the IRS’s enforcement efforts will also drop.

But you’re curious by nature and you always want to be on the safe side, right? In that case, read on to check out some of the red flags that could lead to an audit!

Making a Lot of Money

Think about it, only one in around 250 returns might raise suspicions for the IRA, so there isn’t much you should be worried about. That being said, the chances go higher as your income goes up. If you’re nearing retirement, for example, and want to sell a valuable piece of property, your income will inevitably increase. The same goes for big payouts from retirement plans, too.

People with incomes between $200,000 and $1 million who did not file a Schedule C had an audit rate of only 0.4% in 2019. The rate increased slightly, up to 1%, for those that did file a schedule C. Again, the rate jumped to 2.4% for those who reported $1 million or more.

Does that mean your aim should be to make less money? Far from it! The chances of hearing from the IRS are ridiculously low, even if they do increase along with your income. If you’re not doing anything shady, there’s no reason for you to worry!

Pages: 1 2 3 4 5 6 7

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Latest Posts

  • A senior woman looking thoughtfully at her phone in a bright, modern home office. 6 Social Security Scams You Need to Pay Attention to
  • A happy retired couple enjoying the sunset on a beautiful porch. 8 States to Retire For Less Than 45K a Year
  • A retired couple looking at a map on a sunny balcony overlooking a beautiful coastal town. 10 Countries to Retire Where $150K Is More Than Enough
  • A happy retiree working on a laptop on a sunny patio, symbolizing flexible part-time work. 20 Great Part-Time Jobs For Retirees
  • A senior couple smiling while looking at a tablet in a bright, modern kitchen. 5 Crucial Medicare Changes Coming Soon
  • A senior couple happily unpacking groceries in a bright, modern kitchen. 9 Ways to Shop at Costco Without a Membership
  • A happy retired couple stands on the porch of a beautiful, sunny home, symbolizing an affordable and joyful retirement. 10 Best Places to Retire That Won't Break the Bank
  • An older man confidently using a laptop in a sunlit home office, symbolizing digital security. 7 Common Passwords To Avoid
  • A retired couple looking out a window in their bright, downsized modern home. 11 Mistakes to Avoid When Downsizing Your Home
  • A retired couple smiling on a balcony overlooking a scenic coastal village at sunset. 12 Best Countries to Live Perfectly Well on Social Security

Newsletter

Get retirement planning tips, savings strategies, and lifestyle insights delivered to your inbox.

Related Articles

10 Things You’ll Need To Give Up Now for a Comfortable Retirement

You only live once and you should make the most of every chance you get…

Read More →

10 Things to Know Before Spending Big

With the internet at our fingertips, America is being taken over by big-ticket purchases that…

Read More →
A retired couple smiling while looking at a tablet on a sunlit patio.

27 Best Things to Do with Your Money as a Retiree

Discover 27 practical and actionable strategies to optimize your income, protect your wealth, and confidently…

Read More →
Happy seniors at shopping

16 Surprising Places With Great Discounts for Seniors

Discover 16 surprising places offering great senior discounts on groceries, travel, retail, and dining, plus…

Read More →

7 Ways To Budget Your Groceries in Retirement

We go grocery shopping throughout our whole lives, and that’s a fact. Given the fact…

Read More →

17 Things to Do for a Healthy Retirement

Supersavers are people who often sacrifice early purchases and dream items in favour of meeting…

Read More →

30 Shocking Retirement Facts to Help You Prepare Your Nest Egg

Some seniors like to jokingly refer to retirement as the great unknown. That’s likely because…

Read More →
A happy senior couple enjoying a bright, modern kitchen together.

15 Things That Make Seniors’ Lives Easier

Discover 15 practical tools, home modifications, and services designed to simplify daily routines, enhance safety,…

Read More →

13 Truths About Retirement No One Wants To Talk About

Your golden years may come with some unexpected issues if you haven’t managed to plan…

Read More →
Retired in America

Your Guide to a Confident Retirement

Inedit Agency S.R.L.
Bucharest, Romania

contact@retiredinamerica.com

Trust & Legal

About Us

Editorial Policy

Advertiser Disclosure

Frequently Asked Questions

Contact Us

Disclaimer

Terms and Conditions

Privacy Policy

Subscribe

Unsubscribe

Categories

  • Personal finance
  • Retirement Life
  • Saving & Spending

© 2026 Retired in America. All rights reserved.