The IRS audit rate for individual returns filed in fiscal year 2010 was 1.1 percent, according to statistics released by the agency in 2011 (IR-2011-27). This represented approximately 1.6 million returns out of the approximately 143 million returns filed by individuals. The audit rate for individual returns with positive income of $1 million or more was 8.4 percent for FY 2010. The FY 2010 audit rate for small corporations (corporations with assets below $10 million) was 0.9 percent. The FY 2011 audit rate for large corporations was 16.6 percent.
The majority of individual audits in FY 2010 were correspondence audits. Nevertheless, a trend toward in-person audits for both individuals and businesses seems to be growing. The Treasury Inspector General for Tax Administration (TIGTA) reported in 2011 that the number of IRS revenue agents and tax compliance officers who conduct audits increased by four percent from FY 2009 to FY 2010. TIGTA also called for increased and more sophisticated audit strategies in connection with small businesses in which the noncompliance rate in some sectors is above 50 percent.