IRS Tax Audit Risk Score Calculator — United States

Top IRS audit triggers include: income above $1 million (audited at significantly higher rates), large Schedule C losses or disproportionate business deductions, unreported income detected through 1099s, W-2s, or third-party data (including Form 1099-K from PayPal and Venmo), unusually large charitable deductions relative to income, home office and vehicle deductions, foreign bank accounts (FBAR and FATCA compliance), cryptocurrency transactions, and mathematical errors or inconsistencies on the return.

The IRS uses a Discriminant Information Function (DIF) score to rank returns by audit potential. Each deduction is compared to statistical norms for your income level and filing category — outliers raise the score. The IRS also matches all W-2s and 1099s to reported income (the automated underreporter program or AUR). Additionally, informants, partnerships, related entity audits, and specific compliance campaigns (e.g., crypto, foreign assets) trigger audits. Less than 1% of all returns are audited, but high-income filers face significantly higher rates.

Taxpayer rights during an audit (the Taxpayer Bill of Rights): right to be informed, right to representation (by a CPA, attorney, or enrolled agent — you do not have to speak to the IRS directly), right to appeal disagreements, right to privacy and confidentiality, and right to a fair and just tax system. You can stop an in-person audit at any time by stating you want representation. Never provide documents or statements beyond what was specifically requested.