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Here are a few common factors that could potentially trigger an audit by the Internal Revenue Service (IRS):

• High-income earners: Individuals or businesses with a higher income are more likely to receive scrutiny due to the potential for larger tax liabilities.
• Reporting inconsistencies: Significant discrepancies between the information reported on your tax return and the data received from employers, financial institutions, or other sources may raise concerns.
• Excessive deductions or losses: Claiming excessive deductions or losses that are unusually high compared to your income can be a red flag. The IRS compares deductions to the average for your income bracket.
• Self-employment income: Self-employed individuals have a higher likelihood of being audited because of the potential for underreporting income or inflating deductions.
• Home office deductions: Claiming home office deductions could trigger an audit, as the IRS carefully reviews these claims to ensure they meet the necessary criteria.

It’s important to note that these factors alone do not guarantee an audit, and the IRS selects returns for examination using a combination of automated algorithms and manual procedures. Additionally, random audits can occur without any particular red flags. It’s always advisable to accurately report your income and keep detailed and organized records to support the deductions and credits you claim.

For the most up-to-date information on IRS audit triggers, it’s best to consult the official IRS guidelines or schedule a consultation with us.