5 Most Common IRS Audit Red Flags

4. Prior Audit History

Having a prior audit history does not necessarily mean that you will be audited again for subsequent tax years. However, if the IRS has identified issues or discrepancies during the previous audit, it may increase the likelihood of being selected for an audit again in the future. Over the years, the audit rates have decreased significantly with the IRS auditing 3.8 of every 1,000 income tax returns in 2022. One of the main reasons for this decline is that funding for the agency fell by 20% between 2010 through 2019.