You’re worried about an IRS Audit?
As you prepare to file your 2022 federal tax return, you may be concerned about the possibility of an IRS audit. Most folks can rest easy because the great majority of individual tax returns aren’t audited by the IRS. In fact, over the last few years, under 1% of all income tax returns have been audited, and many of these examinations have been completed by mail.
This means that the vast majority of taxpayers have never met with an Internal Revenue agent in person. Year after year, the number of audits has been decreasing.
However, there are some aspects that could catch the attention of IRS agents. Refusing to file 1099s and W-2s on tax returns obviously increases the chances of being audited. Math errors may elicit an IRS examination, albeit they’re unlikely to result in a full-fledged review. Applying for certain tax deductions may also cause your return to be investigated.
Other activities and actions can increase the likelihood of an audit. To avoid risk, retirees should look for these 8 red flags that could boost the odds of the IRS giving your return an unwelcome examination.
