Part 8/9:
While the majority of W-2 employees with straightforward returns face minimal risk, higher-income individuals, especially those earning multiple millions annually, are more frequently audited. However, recent statements indicate that even taxpayers earning less than $400,000 annually might face increased scrutiny this year, emphasizing the importance of accuracy regardless of income level.
Final Thoughts
The best defense against an audit is thoroughness and honesty. Paying attention to your income reporting, investment disclosures, deductions, and avoiding simple errors can greatly diminish your chances of triggering an IRS red flag. Remember, while the odds are low, vigilance and transparency are your best tools in navigating tax season successfully.