It’s fair to say that the word “audit” is one of the most dreaded words you could ever say. Indeed, an audit doesn’t necessarily mean something terrible, especially if the information you write on your tax return is completely honest and accurate, but it’s inconvenient to deal with it.
There are two different types of tax audits you should worry about. The IRS could either choose to audit your federal tax return, or the state you currently live in. Curious to know the latest data? Here are the states where federal and state tax audits are very common: