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9 IRS audit red flags for retirees

Kiplinger Logo By Joy Taylor, Editor of Kiplinger | Slide 2 of 10: Although the overall individual audit rate is only about one in 167 returns, the odds increase dramatically as your income goes up, as it might if you sell a valuable piece of property or get a big payout from a retirement plan.IRS statistics for 2017 show that people with incomes between $200,000 and $1,000,000 and no Schedule C attached had an audit rate of 0.8%. The rate is 1.6% for Schedule C filers. Report $1 million or more of income? There’s a one-in-23 chance your return will be audited.We’re not saying you should try to make less money — everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you’ll be hearing from the IRS.SEE ALSO: Do You Have What It Takes to be a Millionaire

Making a Lot of Money

Although the overall individual audit rate is only about one in 167 returns, the odds increase dramatically as your income goes up, as it might if you sell a valuable piece of property or get a big payout from a retirement plan.

IRS statistics for 2017 show that people with incomes between $200,000 and $1,000,000 and no Schedule C attached had an audit rate of 0.8%. The rate is 1.6% for Schedule C filers. Report $1 million or more of income? There’s a one-in-23 chance your return will be audited.

We’re not saying you should try to make less money — everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you’ll be hearing from the IRS.

SEE ALSO: Do You Have What It Takes to be a Millionaire
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