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What Triggers an IRS Audit?

Video Transcript

Nobody wants an IRS audit, but do you know what actually triggers one? Here are the red flags to watch for. The IRS uses data to identify discrepancies. Common triggers include unreported income like 1099s not matching your return, excessive deductions for your income level, large business losses on schedule C, especially for cash heavy businesses. Claiming 100% use of a vehicle or large home office deductions. While you can't guarantee avoiding an audit, you can reduce your risk by accurately reporting all income, keeping meticulous records for all deductions and credits, being reasonable with your claims, especially for business expenses, and using a reputable tax professional for complex returns. If you receive an audit notice, don't panic or ignore it. Read the notice carefully to understand the scope. Gather all the requested information. Consider contacting a tax attorney immediately to represent your interests and navigate the process.

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This content was written and reviewed by the licensed tax attorneys at Victory Tax Lawyers, LLP. Our attorneys specialize in IRS tax relief and are licensed members of the California State Bar with a nationwide practice.

Last Reviewed: 2026  ·  Meet Our Attorneys →

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