Three Tax Return Items That May Trigger an IRS Audit

Mar 23, 2026 19:39 UTC

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Financial experts warn taxpayers to avoid certain deductions and reporting practices that could raise red flags with the IRS. While the agency's systems are outdated, specific filing choices may increase audit risk.

Avoid excessive business deductions without proper documentation
Do not report large, unexplained charitable contributions
Refrain from filing significant income fluctuations without clear explanation
IRS systems flag discrepancies between reported income and third-party forms
Automated matching processes increase audit risk for inconsistent filings
Recordkeeping is critical to support reported figures

Taxpayers aiming to minimize their chances of an IRS audit should exercise caution with three common reporting decisions. Although individual tax circumstances vary annually, certain patterns in filings consistently draw scrutiny from the agency’s legacy computer systems. These include claiming excessive business deductions without proper substantiation, reporting large, unexplained charitable contributions, and reporting significant income fluctuations without clear justification. While the IRS does not publicly disclose exact thresholds for triggering audits, the agency’s automated matching systems flag discrepancies between reported income and third-party data, such as Form 1099s or W-2s. This can lead to further review, particularly when reported income is high relative to prior years or when deductions appear disproportionate to earnings. The focus on consistency and documentation underscores the importance of thorough recordkeeping.