We are smack in the middle of tax season again as everyone is trying to meet the April 15th deadline. Many dread the prospect of an IRS audit so getting all the information correctly coded on the tax forms is of course a high priority. No one wants to worry about the IRS knocking on their door (which I don’t think they initially do, opting instead for the conventional letter in the mail).
The unfortunate reality is that there is no silver bullet to avoiding an IRS audit. The IRS can choose to investigate and audit anyone they please at any time. Even low-income earners can be subject to an audit if the IRS becomes suspicious.
What would make them suspicious? Well there are a variety of factors, red flags if you will, that can make an IRS agent question a tax return. Some of them can’t even be avoided. But what can be avoided with all of them is the worry. If you are handling things correctly there is no need to worry about any of these situations.
Common Red Flags That Might Trigger an IRS Audit
While this is not an all-inclusive list, these represent common issues that might pop up as a red flag to the IRS:
Popup thunderstorms dot the landscape of summertime. You know the kind that develop as the afternoon heat and humidity build. Atmospheric conditions can change quickly producing dark clouds and high winds. The next thing you know, a torrential downpour is watering your garden or causing gridlock on the roadways as you drive home from work.