What are the chances of being audited?  IRS examined 0.6% of all tax returns filed in calendar year 2015, about 0.7% of all individual tax returns were audited and 1.1% of corporate returns.  The likelihood of audit increases as AGI (Adjusted Gross Income) increases.  Thirty-seven percent of the individual audits were triggered by earned income credits.  Audits are increasingly being handled by computers, 24% of the individual audits were handled by revenue agents and the remaining 76% were correspondence audits.  In a correspondence audit IRS sends out a letter asking for detail on tax return items and the taxpayer responds.  Overall audit rates are down from prior years.  Congress keeps cutting the IRS budget and the agency has to do more with less.