While the overall audit rate remains relatively low, certain factors significantly increase your chances of being selected. Understanding these triggers helps you file accurately and avoid unwanted attention.
Common Red Flags
Unreported income, excessive deductions relative to income, large charitable contributions, home office deductions, and mathematical errors are among the most common audit triggers.
High-Income Returns
Returns reporting income above $200,000 face higher audit rates. Complex returns with multiple income sources receive additional scrutiny from IRS computer screening systems.
Self-Employment Income
Self-employed individuals face higher audit rates due to the opportunity for underreporting. Maintain meticulous records and separate business and personal expenses clearly.
Protecting Yourself
Keep detailed records for at least 7 years, document all deductions thoroughly, report all income accurately, and file on time. Consider working with a tax professional for complex returns.