IRS Audit Triggers: Why People Get Audited and How to Stay Prepared

When it comes to tax season, one question causes widespread concern: Why do people get audited? While IRS audits aren’t as common as you might think, they do happen—and often for preventable reasons. From mismatched income to suspicious deductions, understanding what prompts an audit can help you stay off the radar.

Let’s look at the most common IRS audit triggers and how to protect yourself with good records, smart filing, and legal support.

Why Do People Get Audited? Common IRS Triggers

The IRS uses a combination of automated systems, red flags, and random checks to identify potential audits. So why do people get audited most frequently?

First, mismatched income is a major trigger. If your reported income doesn’t match what’s on file from W-2s or 1099s, the IRS takes notice. Next, large deductions—especially those not typical for your income level—can raise eyebrows.

Self-employed taxpayers are also more likely to get audited. This is especially true for those working in cash-heavy industries like restaurants or salons. Unreported income or vague expense tracking puts you at higher risk.

Transactions involving foreign bank accounts or cryptocurrency are another trigger. Failing to disclose overseas assets or crypto trades can quickly draw attention.

Finally, audits don’t always mean you did something wrong. The IRS also conducts random reviews for statistical purposes.

High-Risk Red Flags That Draw IRS Attention

Some filings just look suspicious—even when legal. To minimize your audit risk, beware of these common red flags: