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According to the finance company, tax audits can occur at random, because your return is linked to another audited file, or due to shady activity. The agency says taxpayers can expect to see an audit surge over the next three tax years. But for people whose annual income is less than $400,000, their filings will mostly remain unaffected.
As for wealthy individuals who make more than $10 million annually, they will have a 16.5 percent chance of being audited in tax year 2026, per the notice. Meanwhile, the IRS is tripling audit rates on large corporations with assets totaling over $250 million. Large, complex partnerships with assets over $10 million will see an audit hike of 0.1 percent to 1 percent in tax year 2026.