Avoid IRS Audit: 3 Tax Return Red Flags to Avoid

If you want to avoid an IRS audit, steer clear of certain items on your tax return. Here's the thing: three major red flags can trigger unwanted scrutiny. First, reporting very high income, especially if it doesn't match your industry norms, raises eyebrows. Second, claiming large deductions that seem out of proportion can also catch the IRS's attention. Lastly, taking advantage of home office deductions without proper documentation can lead to trouble. What's interesting is that the IRS audits less than one percent of all taxpayers, but these mistakes can increase your chances significantly. The bottom line is, understanding these risks can help you file with confidence and keep your finances safe.