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:

• Big charitable donations without clear documentation

• Rounded numbers throughout your return (like $500 or $1,000 exactly)

• Repeated business losses from side gigs or hobbies

• Aggressive home office deductions that aren’t well-supported

• Questionable dependents, especially those claimed inconsistently

Even if your return is accurate, these triggers can lead to questions.

How to Stay Prepared in Case of an IRS Audit

Preparation is your best defense against an IRS audit. First, keep good records—ideally for at least seven years. Save receipts, mileage logs, and statements that support your deductions and income claims.

Next, be honest. Report all sources of income, even from freelance work or side hustles. Use reliable tax software or a professional preparer to avoid errors.

Finally, don’t fall for tax myths. If a deduction sounds too good to be true, double-check the IRS rules or get legal advice.

What to Do If You’re Audited

If you are audited, don’t panic. Most audits are resolved quickly with documentation. Respond to IRS notices by the listed deadline, stay professional, and avoid emotional responses. Having an expert on your side also helps ensure your rights are protected—and prepaid legal services can make getting qualified legal advice easy and affordable. 

Know Your Rights with LegalFix

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You can also find helpful articles and state-specific explanations of nearly 1,600 legal topics—or browse state and federal statutes to better understand the laws that affect you—all at LegalFix.com.