These mistakes could land you with an audit by the IRS: How to avoid them when submitting your 2025 return

Every year, taxpayers are required to file their tax returns with the Internal Revenue Service (IRS). Whether you’re an employee or self-employed, it’s crucial to fill out the necessary forms accurately. Mistakes can lead to serious consequences, including the possibility of an IRS audit.

“An IRS audit is a review/examination of an organization’s or individual’s books,” states the agency, and includes an examination of “accounts and financial records to ensure [the] information reported [one’s] tax return is reported correctly according to the tax laws and to verify the reported amount of tax is correct.” Audits are one of the main tools the IRS has to go after tax avoidance.

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Be careful with deductions

Self-employed individuals should be especially cautious when claiming deductions on their tax returns. A deduction reduces the amount of income subject to taxation, but excessive or suspicious deductions could trigger an IRS investigation.

Claiming too many business-related expenses—or expenses that don’t seem relevant to your business—can raise red flags.

The IRS requires that all deductible expenses be “necessary and ordinary” for the business. If your deductions seem excessive or unrelated, you may increase your chances of being audited.

However, so long as you have evidence that justifies the expenses as related to your business, you should not be afraid of an audit. Being selected for an audit doesn’t necessarily mean you’ve done anything wrong. In addition to catching significant errors, the IRS uses different methods to determine which tax returns to review.

Random selection is one method used by the IRS. The IRS compares tax returns to established norms for similar filings. These norms are developed through audits of randomly selected tax returns as part of the agency’s National Research Program.

Additionally, you may be audited by the IRS if your tax return lists another taxpayer or entity that is being audited.

How the IRS will notify you that you are being audited

If your return is selected for an audit, the IRS will notify you by mail. Any contact through phone, email, or social media claiming to be from the IRS may be a scam.

IRS audits can be conducted by mail or through an in-person interview to review financial records. In-person audits may take place at an IRS office, your home, your place of business, or your accountant’s or legal representative’s office.

The IRS typically audits tax returns from the past three years. If your return is selected, the agency will provide written notice specifying which documents they need to examine.

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This article was originally written in Spanish by Corina Gonzáles, translated with the help of AI, and edited by Maite Knorr Evans.