Ever wonder why some tax returns are audited by the IRS while most are ignored? Well, there’s a whole host of reasons to this age-old question. The IRS audits only about 1% of all individual tax returns annually. The agency doesn’t have enough personnel and resources to examine each and every tax return filed during a year. So the odds are pretty low that your return will be picked for an audit. And of course, the only reason filers should worry about an audit is if they are cheating on their taxes.

  1. Failure to report all taxable income.
  2. Returns claiming the home-buyer credit.
  3. Claiming large charitable deductions.
  4. Home office deduction.
  5. Business meals, travel and entertainment.
  6. Claiming 100% business use of vehicle.
  7. Claiming a loss for a hobby activity.
  8. Cash businesses.
  9. Failure to report a foreign bank account.
  10. Engaging in currency transactions.
  11. Math errors.
  12. Taking higher-than-average deductions.