What triggers an IRS audit and how can you avoid one?

[riya]

Many taxpayers worry about getting audited by the IRS, especially when filing complex returns. What are the most common triggers that cause the IRS to flag a return for audit — like high deductions, income mismatches, or random selection? Also, what practical steps can individuals and small businesses take to reduce their audit risk? Anyone here with first-hand experience or professional advice on this?

 

[BlissCore]

The IRS usually flags returns for audits when there are unusual discrepancies, like reporting very high deductions compared to income, mismatched income from W-2s or 1099s, or claiming certain credits that are often abused. Random selection also plays a role, though it’s less common. To reduce risk, keep accurate records, report all income, avoid exaggerating deductions, and consider using a qualified tax professional for complex returns. Staying organized and transparent with your filings is the best way to keep the IRS happy.

 

[danisjohn]

IRS audits are usually triggered by unusual income spikes, missing tax documents, excessive deductions, or inconsistent financial information. To avoid an audit, always report income accurately, keep records, file on time, and use honest, reasonable deductions. Staying transparent and organized helps reduce audit risk.

 

[Gsusangrey]

Unreported income or excessive or unusual deductions in comparison to your income peers are common causes of IRS audits.To prevent one, make sure you have thorough documentation to support each claimed deduction, report all income (matching all W-2s and 1099s), and double-check your math.

 

[charlie]

Unreported income, as well as excessive or unexpected deductions in compared to your income peers, are common reasons for an IRS audit.To avoid one, make sure you have detailed evidence to back up each claimed deduction, record all income (including W-2s and 1099s), and double-check your math.