What Triggers an IRS Audit?
“This is financial advisor, Patrick Munro, talking about what triggers an IRS audit. Normally, the IRS is a very unpredictable agency but they will look for what’s called flags in the accounts. It’s important to avoid an IRS audit by always filing a tax return on an ongoing basis. Try to use the same format, try to stay with the same CPA if you’re using one. And don’t cause any red flags to pop up in your account, unusual deductions that you haven’t taken in the past, things that would be construed as a red flag by the IRS because they will absolutely trigger an audit and cause you to explain your position. So, filing a timely tax return, paying your quarterly payments in a timely manner so there’s no collection issues that will not cause a red flag to occur. And this will trigger an IRS audit and it’s the last thing that you want.
