Whether you’re expecting a refund or preparing to pay, one concern quietly looms for many: the IRS audit.
While only a small percentage of taxpayers are actually audited, it’s still worth understanding what can trigger one—and more importantly, how to reduce your risk.
Here’s what you need to know in 2025 about staying off the IRS radar and filing with confidence.
1. Accuracy Matters: Double-Check Everything
The most common reason for IRS audits? Simple mistakes.
Math errors, missing forms, or incorrect Social Security numbers can all raise red flags. Before you hit “submit” (or drop your forms in the mail), take time to carefully review every section of your return. Pay special attention to:
- Reported income from all sources (W-2s, 1099s, investments, crypto, etc.)
- Matching deductions and credits with proper documentation
- Your filing status and dependent claims
Using tax software can help, but if your financial life is more complex—say, you own rental property, freelance on the side, or run a business—it’s wise to have your return reviewed by a professional CPA.
2. Be Transparent: Honesty Is Your Best Shield
Underreporting income or inflating deductions might seem like a shortcut to a bigger refund—but the risks are steep. The IRS uses sophisticated algorithms and data matching to spot inconsistencies.
If your reported income doesn’t match what’s reported by banks, payroll companies, or brokerage firms, the IRS notices. Likewise, excessive deductions—especially if they’re out of proportion to your income—can trigger closer scrutiny.
Honesty isn’t just ethical—it’s smart tax strategy.
3. Avoid Audit Triggers: Know the Risk Zones
Certain tax situations, even if perfectly legal, are statistically more likely to trigger audits:
Charitable Contributions
Large donations relative to your income? Fine—as long as you have documentation. Keep receipts, letters from charities, and proof of payment.
Self-Employment & Schedule C
If you’re a sole proprietor or freelancer filing a Schedule C, you’re more likely to be audited—especially if you claim significant deductions for travel, meals, or a home office. Be sure these deductions are both ordinary and necessary for your business and that you keep organized records.
Capital Gains
Selling stock or real estate? Capital gains must be reported accurately. With more platforms sending 1099-B forms, the IRS often already knows what you sold—and for how much. Make sure your cost basis and sales proceeds are accurate and supported by documentation.
4. File Electronically (and Consider Filing Later in the Season)
Filing electronically not only speeds up your refund—it also reduces errors. E-filed returns are less likely to be flagged than handwritten or paper-filed returns.
Additionally, while it may seem counterintuitive, filing in early April (rather than in January or February) may slightly reduce your audit risk. Early filers’ returns often sit in the system longer and are subject to more scrutiny. That said, don’t file late—April 15 is still the deadline, and late filing without an extension can bring penalties.
5. Work With a Trusted Tax Professional
If your financial situation is more complex than just a single W-2, working with a CPA isn’t just a good idea—it’s peace of mind. We help Seattle-area individuals, business owners, and real estate investors navigate IRS rules, minimize their tax burden legally, and file accurate, audit-ready returns.
We also help clients:
- Prepare for potential audits with organized recordkeeping
- Evaluate whether they’re over-claiming or under-utilizing deductions
- Stay in compliance with both federal and Washington state tax law
In today’s tax environment, the best way to avoid an IRS audit is simple: file honestly, accurately, and with supporting documentation. Tax software can help, but nothing replaces the value of a trusted CPA—especially if you own a business, invest in real estate, or have multiple income streams.
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