<< only 1/4 of taxpayers get audited. >>
<< huh? Only like .5% of people get audited, and I think that might even be high. >>
Um you are both correct, if you explain your logic a little bit. The percent of returns audited last year were 0.56%. Lets assume that everyone files one return and that everyone has an equal 0.56% probability of being audited each year.
Thus each year you have a 99.44% chance of avoiding an audit. However, a full carreer may contain 50 years of tax returns (Assuming you started filing tax returns after college at age 25 and died at age 75). Thus your overall chance of avoiding being audited in a lifetime is 99.44% ^ 50 = 75.52%. Or the number of people who are audited in their lifetime is 100% - 75.52% = 24.48%.
Thus in a year 0.5% is the correct number, in a lifetime 25% is a good estimate. However, this assumes that the audits are completely random. I bet if you had lots of unusual tax issues, your chance of being audited will be higher than 0.5% each year.
Edit: Blackjack is the only game where professionals can consistantly win money. This is since with minor counting it is the only game where the odds are slightly, slightly in your favor. (Unless you have a lot of rich friends that don't know how to play poker...)