Common Red Flags that Might Trigger an Income Tax Audit

When filing income taxes, it's important to be aware of certain red flags that could potentially trigger an audit by the tax authorities. Some common red flags to watch out for include:

• Significantly higher or lower income compared to previous years
• Claiming excessive deductions or credits
• Large charitable donations without proper documentation
• Underreporting income or omitting sources of income
• Claiming business expenses that are not valid or consistent

By avoiding these red flags and ensuring accurate and complete documentation, taxpayers can reduce the likelihood of being selected for an income tax audit.