HomeFinance NewsPersonal finance4 Haunting Signs the IRS Wants to Audit Your Taxes: How to...

4 Haunting Signs the IRS Wants to Audit Your Taxes: How to Vanish from Their Radar


4 red flags for an IRS tax audit — and how to avoid the ‘audit lottery,’ according to tax pros


The recent IRS enforcement has focused on high-income individuals, corporations, and complex partnerships, but average taxpayers also face the risk of audit for specific issues.

Some common red flags that might trigger an audit include missing income, inconsistent information compared to records received by the IRS, excessive deductions relative to income level, and accuracy issues.

It is essential to substantiate deductions with detailed records and avoid using round numbers.

The earned income tax credit, commonly claimed by low- to moderate-income workers, has been subject to higher scrutiny because of instances of improperly claimed payments.

While higher earners have a higher probability of being audited, claimants of the earned income tax credit have a significantly higher audit rate due to potential improper payments.

However, beginning in fiscal 2024, the IRS intends to reduce the number of correspondence audits for earned income tax credit filers.

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    “Audit rates of individual income tax returns decreased for all income levels from tax years 2010 to 2019, largely due to lower IRS funding, according to a report from the Government Accountability Office.”

    “The IRS audited 3.8 of every 1,000 returns, or 0.38%, during fiscal year 2022, down from 0.41% in 2021, according to a 2023 report from Syracuse University’s Transactional Records Access Clearinghouse.”


    “Average taxpayers could still face an IRS audit for certain tax issues, experts say.”

    “Everyday filers could still face an audit — and certain issues are more prone to IRS scrutiny, experts say.”

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