A three-year random audit program started by the IRS in 2007 will now be continued indefinitely. These random audits of individual tax returns are used by the IRS to collect noncompliance data for adjusting general audit formulas and updating tax gap estimates.

Tax returns claiming the homebuyer tax credit are another audit target. The IRS expects to open 200,000 audits by the end of 2010 to address potential fraud in claiming the homebuyer credit. The Service will also be monitoring the recapture of the credit by checking public databases of real estate sales. Generally, those who sell a home within three years of taking the tax credit must pay it back.