IRS Launches Widespread Investigations Targeting a Specific Tax Filing Action — Are You at Risk!

Tax season may be over, but the IRS is just getting started. As the agency begins reviewing returns from the 2024 filing season, it’s ramping up investigations targeting specific tax filing actions. While most filers can expect a routine process, certain taxpayers are under increased scrutiny — and if you fall into one of these categories, you could be at a higher risk for an audit.

Why Is the IRS Increasing Audits?

Each year, the IRS reviews millions of tax returns to ensure compliance with federal tax laws. Their focus? Identifying suspicious patterns, inflated claims, or deductions that don’t align with income levels. This year, the agency is paying closer attention to filers who:

• Claim unusually large deductions relative to their income
• Report business expenses that seem excessive or inconsistent
• Take advantage of home office deductions that don’t meet IRS criteria
• Use tax credits or adjustments that don’t match their reported income

While this doesn’t automatically mean wrongdoing, these filings stand out from the average return, prompting the IRS to investigate further.

Common Red Flags That Trigger IRS Reviews

Wondering if your return might catch the IRS’s eye? Here are some common triggers:

Red Flag	Why It’s Risky
High charitable deductions	If much higher than peers, may be questioned
Large home office deduction	Must meet strict “exclusive use” rules
Excessive business expenses	Needs proof they are ordinary and necessary
Underreported income	IRS matches income from third-party sources
Claiming 100% business use of a vehicle	Rare and often flagged for closer review

The more an item on your return looks out of line compared to others in your income bracket, the higher the chance it gets flagged.

What Happens If You’re Audited?

If the IRS flags your return, don’t expect a phone call or email — the agency will send a formal letter by mail. This notice will outline what parts of your return are under review and what documentation they’re requesting.

There are typically three types of audits:

1. Mail audits – You respond by mailing documents to verify claims.
2. Office audits – You visit an IRS office for an in-person review.
3. Field audits – An IRS agent visits your home or business.

If you don’t respond or fail to provide sufficient documentation, the IRS may adjust your return, leading to additional taxes owed, plus penalties and interest.

How to Lower Your Audit Risk

While no one can guarantee audit-proof taxes, you can reduce your risk by:

• Keeping detailed records and receipts for all deductions and expenses
• Only claiming deductions and credits you qualify for under IRS guidelines
• Avoiding estimates or “rounded” numbers that look unrealistic
• Filing a complete, accurate return with no missing forms or mismatches

For self-employed individuals, special care is needed. For example, the home office deduction is only allowed if the space is used exclusively and regularly for business — a corner of your dining room doesn’t qualify.

Stay Proactive and Prepared

An IRS audit doesn’t mean you’ve broken the law — it’s simply a review to ensure accuracy. If you’ve filed honestly and maintained good records, you’ll be ready to respond if needed. By understanding what raises red flags, you can file smarter and avoid unnecessary headaches.

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