What is the audit rate? Q.What is the audit rate? A.The audit rate is the percent of tax returns filed for a tax year that are ultimately examined by the IRS. About 153.9 million individual tax returns were filed based on 2018 income, but only about 520,000 of those returns were audited—an overall audit rate of 0.3 percent. Audit rates are generally highest for high-income taxpayers, taxpayers with business income, large corporations, and earned income tax credit claimants. Read more about What is the audit rate?
How did the major COVID-19 pandemic relief bills affect taxes? Q.How did the major COVID-19 pandemic relief bills affect taxes? A.The onset of the COVID-19 global pandemic in early 2020 prompted a sharp and severe global recession, as health authorities urged individuals to isolate as much as possible to slow the spread of the disease. To help keep businesses afloat during this period and aid people who lost work as layoffs surged, Congress adopted a series of measures, including tax cuts, to mitigate the economic damage and promote a faster recovery. Read more about How did the major COVID-19 pandemic relief bills affect taxes?
How did the Tax Cuts and Jobs Act change business taxes? Q.How did the Tax Cuts and Jobs Act change business taxes? A.The Tax Cut and Jobs Act made significant changes to the corporate income tax and taxes on pass-through businesses. While the individual income tax provisions and pass-through provisions expire after 2025, many of the other business tax provisions are permanent. Read more about How did the Tax Cuts and Jobs Act change business taxes?