Top 10 IRS Audit Triggers

For nearly 4 decades, we have provided tax preparation services across the country, and have received a letter or two from the IRS. The list below contains 10 reasons an audit MAY be triggered.

1. Income not matching
2. Numbers in the return not matching the documents submitted by other payers
3. Mismatched tax ID numbers
4. Mathematical errors
5. Forgetting to sign your return
6. Misentering (or misclaiming) dependents
7. Overestimating the value of property donated to charity
8. Reporting unusually large deductions (for example, business expenses) compared with previous years
9. Claiming losses from a business activity the IRS views as a hobby (BTW, businesses that make no money are considered a hobby)
10. Using round numbers instead of exact deduction amounts

This is not an exhaustive list as the IRS uses several mathematical equations to determine whether a taxpayer should be audited; however, avoiding these mistakes will lower your chances of triggering the dreaded computer-generated letter.

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