For example, in 2014, the IRS decided to audit over 16% of income tax returns that had $10 million in income. Usually, more money automatically means more audits, but taxpayers with less than $25,000 could be audited, too, and that happens because of refundable credits.
Now, back to our list. It’s worth mentioning that 4 out of those 10 states we mentioned are in the top 20% for household income, and all except two, Florida and Nevada, are in the top half.
Given the fact that we’re talking about a higher average household income, it only makes sense to see a greater frequency in terms of audits in the majority of states. In other states, this might not apply. For instance, one of the reasons why Hawaii is on this list is that moving expenses are very high.
