As a result of budget cuts, IRS audit rates have plummeted to historical lows. This has widened the tax gap to record levels. Here’s how to protect yourself from the coming tidal wave of IRS audits designed to finance higher government spending.

The current IRS budget is down 20% in inflation- adjusted dollars from 10 years ago. As a result, the IRS workforce shrank by 15%, or over 33,000 employees, from 2010-2020. Its enforcement budget for audits is down 30% from 2010, with 17,000 fewer Revenue Agents employed. As a result, the IRS, by its own admission, is “outgunned.”

Due to these factors, the number of IRS audits has dropped by...