What Is an IRS Audit?
An audit is a review of your financial information to confirm accuracy. Most are done by mail, but some require in-person meetings β and they can get messy fast.
Top IRS Red Flags
- Unreported Income
The IRS matches W-2s, 1099s, and other third-party forms. Donβt leave anything out. - Excessive Deductions
Big deductions (especially for meals, travel, or a home office) that donβt match your income can raise eyebrows. - Business Losses Year After Year
Legitimate losses are fine, but if you always show losses, the IRS might question whether itβs really a business. - Large Charitable Donations
If your donations seem out of line with your income, expect questions. - Claiming Dependents Without Documentation
Always have supporting records β birth certificates, school or medical documents.
Final Thoughts
Just because youβre flagged doesnβt mean youβve done anything wrong β but you do need to be prepared.
Got a Notice from the IRS or Worried About an Audit?
We help individuals and small businesses respond to IRS letters, fix problems, and avoid audits in the future. Donβt go it alone.
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