Feb 22, 2018

Question of the Day: What percent of tax returns get audited by the I.R.S.?

Answer: 0.8% (less than 1 in 100)

Questions:

  1. Why do you think the percentage of returns that get audited is so low? Explain your reasoning.
  2. Why do you think that taxpayers are so afraid of being audited? Is their fear warranted?
  3. Do you think that low audit rates can contribute to more taxpayers "cheating" on their tax returns? Why or why not? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Motley Fool):

During the 2015 fiscal year, the latest for which complete data is available, the IRS audited about 0.8% of all tax returns, or one in every 120 households.

In 2017, I wouldn't be surprised if the audit rate is even lower. The IRS's funding has been slashed in recent years, to the point where l the IRS publicly admitted that as many as half of the people who call with questions about their taxes might not even get their calls answered. In the midst of these funding cuts, the IRS audit rate dropped from 1.1% in 2010 to 0.8% in 2015. 

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April 15th isn't too far off now. Give your students practice filling out tax forms with this NGPF Activity, CALCULATE: Completing a 1040EZ

About the Author

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!

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