Audit RED FLAGS: 12 Ways to Prevent Uncle Sam From Showing Up at Your Door

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5. Reduce year-to-year differences

First of all, all of us should know that the IRS selects tax returns for audit based on multiple criteria. One of them is actually based on comparisons with the tax returns filed in previous years.

According to an enrolled agent and founder and CEO of CWSEAPA, Craig Smalley, the larger the amount of money from one year to another, the bigger the chances of being audited by the IRS.

However, we are referring to really big differences such as $2,000 of mortgage interest in one year and $25,000 in the next one. Yes, it doesn’t happen that often, but the IRS deals with year-to-year differences every single year. Just try to minimize these differences to prevent an audit.

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