The most burning question often asked of tax practitioners is a simple one – “What are my chances of being audited?” Despite the simplicity of the question, the answer is relatively complicated. An individual’s or business’ chance of being selected for an Internal Revenue Service (“IRS”) audit is based on a number of different factors, including IRS computer models, certain “red flags” that may target a return for examination, and the failure to report information that was reported to the IRS by a third party, such as on a Form 1099-INT filed by a bank. Recently, the IRS released its annual “data book,” a publication that provides statistical information regarding the IRS’s audit activities during the previous fiscal year. One key piece of information contained in the recent data book is the number and categories of tax returns examined by the IRS during 2009 – statistics that also help predict the IRS’s likely audit activities during 2010 and beyond.