IRS audits are rare, and the majority of Florida residents may never find themselves at the center of one. However, there are certain actions you might take that may attract the attention of the IRS, and in some cases, these actions may trigger an audit.
Per NerdWallet, the IRS may audit you completely at random, meaning nothing you reported on your taxes raised suspicions. However, the IRS may also decide to audit you if you do one or more of the following when filing your taxes.
1. Fail to report income
Failing to report income is a common way to trigger an audit. Keep in mind that the IRS typically receives a notification about your income, so it may have information about it even if you fail to report it. Resist the temptation to not report, or under-report, any of your earnings.
2. Deduct too many expenses
Depending on how you make your living, you may be able to deduct certain business expenses. However, there are rules and guidelines associated with doing so. Writing off uncommon purchases, or writing off inappropriate purchases, may grab the attention of the IRS and lead to an audit.
3. Claim the home office deduction improperly
The IRS allows those who use a particular room in their home exclusively for business to deduct certain expenses. If you claim a home office deduction for a room that also doubles as your family living room, for example, this may be a red flag for the IRS.
Keep in mind that if the IRS does decide to audit you, it may do so through the mail. Most audits the IRS conducts are mail audits. However, some tax-reporting errors or omissions may trigger a more extensive type of audit, such as an in-office or field audit.