Some taxpayers may assume they’re less likely to be audited this year due to recent workforce reductions at the IRS.
Under the Trump administration, the Department of Government Efficiency directed the agency to cut approximately 7,000 jobs earlier in 2025. However, the impact may be less significant than expected — many positions have already been reinstated.
However, as the agency regains capacity, tax return reviews could remain as thorough as ever. Experts recommend that filers carefully review their documents and correct any discrepancies to avoid drawing attention.
Stay informed on how audit procedures may be evolving — and what steps you can still take to protect yourself, even after you’ve filed.
What May Trigger an Audit This Year
The IRS uses automated systems and statistical models to flag returns that appear unusual compared to others in similar income brackets. Personnel review those with anomalies in stages.
In 2024, the U.S. Government Accountability Office reported using artificial intelligence technology to detect taxpayers who are most likely to skip out or not pay the taxes they owe.
According to Gallegos, audit triggers include:
— Large deductions that don’t align with reported income
— Substantial losses from businesses reported on Schedule C
— Missing or mismatched income, especially from 1099s or other third-party sources
— Significant charitable contributions without proper documentation
— Foreign account reporting issues or cryptocurrency transactions
Miller says additional audit triggers include different income types. Certain very high earners are in the spotlight now.
In 2024, the IRS vowed to focus on high-income taxpayers who have failed to file federal income tax returns in more than 125,000 instances since 2017.
If you’re self-employed, you should have taken extra care to be precise and accurate. These returns tend to be audited at a higher rate because there is more flexibility in reporting income and expenses, which can require verification.
However, Gallegos says, many audits are random, so even accurate returns can be selected.
[READ: A Guide to Tax Deductions for the Self-Employed]
Tax Audits for Individuals Are Uncommon
A tax audit examines a filer’s books, accounts and financial records. These audits are historically rare, though, and have been declining for years. IRS data show that the audit rate for personal income tax has decreased by about two-thirds since 2010, declining to just 0.36% in 2023.
“Audit rates for the average taxpayer have remained relatively low for years and will likely continue at similar levels in 2025,” says Mark Gallegos, certified public accountant and partner at Porte Brown Accountants & Advisors in Elgin, Illinois.
The IRS uses a combination of automated and human processes to identify which tax returns deserve a closer look. Therefore, if an employee would normally catch anomalies but is not there to do so, some returns may slide under the radar. Fewer IRS agents may mean fewer random audits, especially for middle- and low-income taxpayers
Paul Miller, CPA and founder of the firm Miller & Company LLP headquartered in Queens County, New York, says he and his colleagues are seeing fewer people being audited now than in the past. “The IRS is settling cases to make the audits go away,” he says.
Audits May Come Later
Per the IRS, you will know you are being audited if you receive a letter in the mail. The IRS does not notify taxpayers by phone, text or email.
So, if you do not receive a letter for your 2024 tax return, should you relax and assume that it won’t come? No. The IRS generally includes returns filed within the last three years in an audit. However, if the agency identifies a substantial error, it may go back additional years but usually doesn’t go further than the last six.
“Questionable items can be flagged and reviewed even without a full audit,” Gallegos says. “Taxpayers who intentionally underreport income or exaggerate deductions risk penalties, interest and long-term consequences, including losing eligibility for certain credits in future years.”
Moreover, Gallegos says that the IRS is in a long-term hiring and modernization phase. This includes building out audit teams, improving customer service and upgrading outdated technology systems. Such efforts are expected to gradually increase the agency’s capabilities, not just in enforcement but also in overall taxpayer service and efficiency.
[Red Flags That Could Trigger a Tax Audit]
Amend Your Return Now, if Necessary
If you are more worried than ever that the tax return you filed is not accurate or complete, take action immediately.
“Amend your return,” Miller says. “The government doesn’t care; they know mistakes happen.” Once you make the appropriate changes, you can reduce the odds of an audit.
To amend your return, you can file Form 1040-X electronically with tax-filing software for the current or two prior tax periods.
Just don’t wait until you get a letter from the IRS. “You’re not supposed to amend your return if you get the notice that you are being audited,” Miller says.
[Read: How to File an Amended Tax Return]
Reduce Your Risk of an Audit
The Trump administration’s changes to the IRS may have slightly influenced examination reductions, but eventually they’ll bounce back. This is particularly true as technology improves and it is employed to detect problematic returns that might otherwise slip through the cracks.
You can decrease your chances of being audited in the future by following Gallegos’ tips:
— File accurately and honestly. Even small discrepancies can cause issues.
— Use exact figures. Avoid rounding or estimating income and expenses.
— Report all income. Include gig economy work, side hustles and crypto transactions.
— Keep thorough records. Hold onto receipts, mileage logs and donation confirmations.
— E-file. Electronic filing reduces errors and ensures quicker IRS processing.
Even if you are audited, try not to panic. In most cases, your tax records are examined by mail.
In the letter, the IRS will ask you specific questions about the information you included in your return. You will have to send them documents that support your responses.
If you did make an error that resulted in an underpayment, you’ll be hit with a tax bill. At that stage, you have some decisions to make. You can pay the amount you owe or appeal the audit by filing a protest within 30 days of the date on the letter from the IRS.
More from U.S. News
How Much Is the Average Tax Refund and When Will I Get Mine?
A Checklist for Last-Minute Tax Filing
How to Choose the Right Tax Professional
Are Your Chances of Getting Audited Lower in 2025? originally appeared on usnews.com
