Do know someone who has received a notice from the Internal Revenue Service (IRS) about an impending audit? Have you been so unfortunate as to receive one? If so, you may be wondering how the IRS decides which tax returns to audit. Is it random? Is there a complicated algorithm they use to decide? Or, are there certain red flags that IRS agents look for when they process tax returns?
While the odds of receiving an audit notification tend to be low, there are things that might be on your tax return that could trigger one of those dreaded IRS notifications. To find out some tax items that the IRS usually considers to be red flags, read further.