How often are tax returns audited in the US?
But audits aren’t a speedy affair for most Americans. Thousands of Americans see their tax returns audited every year — but it’s safe to say none have seen an audit go on as long as President Donald Trump’s. Since he first launched a run for the White House in 2016, Trump has declined to release his tax returns.
How unusual is a tax audit like Trump’s?
Given the size of the refund, Trump’s audit is very much unlike what the average American would experience if their return were to come under scrutiny from the Internal Revenue Service. But even among high-net worth individuals, an audit like Trump’s is highly unusual in many ways, experts said.
Did the IRS find discrepancies in Trump’s tax returns?
That means if Trump is telling the truth, then the IRS has repeatedly found discrepancies in his returns. Until recently, it was typical for big corporations to get audited every year. This was called the Coordinated Examination Program. Many big public corporations even had rooms specifically designated for use by visiting IRS agents.
Why is it so hard to audit the IRS?
Compounding the difficulty of sorting out these gray areas, the IRS is operating on a shoestring budget, despite research showing that a dollar of investment in the IRS yields more than a dollar in tax collections. Auditors must stretch their budgets to uncover the information they need and then make difficult judgment calls.
How long does an IRS audit take to resolve?
Experts say that the typical audit takes anywhere from three to nine months to be resolved. On its website, the IRS notes that a statute of limitations generally limits the amount of time to assess additional tax on a return to three years from when that return was due or filed.
Is it legal to release your tax returns during an audit?
NPR spoke with three tax experts, two of whom wanted to talk on background only. They included one former high-ranking government official. Their conclusion: No law exists barring people from releasing their tax returns during an audit.