5 Most Common IRS Audit Red Flags

In this article, we discuss 5 most common IRS audit red flags. If you want to read our detailed analysis of auditing practices in the US, go directly to read 20 Most Common IRS Audit Red Flags.

5. Inconsistencies on Tax Returns

When reviewing tax returns, the IRS compares the information provided by taxpayers with other sources of data, such as W-2 forms, 1099 forms, and other third-party reports. If there are significant disparities or inconsistencies between the reported income, deductions, credits, or other tax-related items on your return and the information available to the IRS, it can raise suspicion and potentially lead to an audit.