What can trigger a tax audit?

Discrepancies in reported income can indeed trigger a tax audit. The Internal Revenue Service (IRS) uses a variety of data analysis techniques to cross-check the information reported on tax returns against information it receives from employers, banks, and other third parties. When the figures do not match, or when there are inconsistencies that raise red flags, it can lead to an audit as the IRS seeks to clarify the discrepancies. Accurate reporting is crucial because any divergence from what has been reported can suggest errors, underreporting, or even fraud, prompting further investigation.

Filing for multiple years, while it may draw attention, does not inherently trigger an audit unless those filings contain errors or inconsistencies. A high number of dependents might raise some questions regarding eligibility for certain credits, but it is not a direct cause for an audit by itself. Finally, claiming deductions is common practice, and as long as they are substantiated and reasonable, they typically do not lead to audits unless there are significant abnormalities or concerns raised by other factors on the tax return.