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16 Reasons the IRS Will Audit Your Tax Return


Ever wonder why some tax returns are eyeballed by the Internal Revenue Service while most are ignored? Short on personnel and funding, the IRS audited only 0.86% of all individual returns in 2014. And the audit rate in 2015 has fallen to 0.84%. So the odds are pretty low that you will be singled out for review. And, of course, the only reason filers should worry about an audit is if they are fudging on their taxes.

That said, your chances of being audited or otherwise hearing from the IRS escalate depending upon various factors, including your income level, the types of deductions or losses claimed, the business in which you're engaged and whether you own foreign assets. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Although there's no sure way to avoid an IRS audit, these 16 red flags could increase your chances of unwanted attention from the IRS.

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