Here are the top 10 IRS tax audit triggers, as compiled and published by The Wall Street Journal1 on March 5, 2022:
1. Education tax credits
2. Small businesses
3. Child tax credit
5. Earned income tax credit
6. Large charitable deductions
7. Rental income
8. Home office deductions
9. Early withdrawals from IRAs and 401(k)s
10. Health premium tax credit
If you are at high risk, there are three things you should do:
- Listen for your tax adviser to explain legal requirements and your options.
- Change the tax engagement to an ongoing year-round service.
- Consider the risk in your overall financial planning.
1The article link may be behind a paywall.