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 is cryptocurrency taxed? Q.How is cryptocurrency taxed? A.Cryptocurrencies, or “crypto,” allow individuals to exchange money or trade assets through decentralized networks, as opposed to traditional payments systems and trading platforms managed by the finance industry. Read more about How is cryptocurrency taxed?
What are prepopulated tax returns? Q.What are prepopulated tax returns? A.Advancements in technology, greater availability of third-party information, and tax simplification have enabled tax authorities in many countries to “prepopulate” taxpayers’ returns—that is, the tax authorities at least partially complete tax returns before transmitting the forms to taxpayers. In the United States, however, the IRS does not prepopulate tax returns. Read more about What are prepopulated tax returns?