IRS Audit Red Flags You Need to Know
Let’s be clear up front: The odds are pretty low that your tax return will be singled out for review. The Internal Revenue Serivce, short on personnel and funding, audited only 0.86% of all individual returns in 2014. The audit rate in 2015 has fallen to 0.84%.
That said, your chances of being audited escalate depending upon various factors, ranging from income level to the types of deductions or losses claimed. Math errors may draw IRS inquiry, but they’ll rarely lead to a full-blown exam. Although there’s no sure way to avoid an IRS audit, these three red flags could increase your chances.
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