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10 Tax Mistakes That Could Trigger an IRS Audit (From Someone Audited)

You can avoid these painfully common tax mistakes.

By Stacy Garrels

Edited by Andrea Basse

Updated Jan. 16, 2026

Most tax audits don't start because someone tried to cheat the system.

Take it from me, I was audited three times by the IRS in my 20s. A good-faith error one year heightened scrutiny in others. And those audits worked out in my favor: for two of them, I actually wound up with refund checks.

That's how audits happen. They start because something didn't line up. Maybe a number didn't match, a W-2 form was forgotten, or a return raised too many eyebrows for the IRS to look away.

If you want to crush your tax debt and avoid scrutiny, it's important to understand what triggers an audit so you can prevent mistakes and have an error-free filing season.

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Data entry errors

According to the IRS, inaccurate information is among the most common filing mistakes. Wages, dividends, bank interest, and other income reported on W-2s and other forms need to match what the IRS already has on file.

Tax software can help catch math errors, but it won't fix a mistyped number or a forgotten form. Use caution, as one mistake can flag your entire return.

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Incorrect filing status

Filing under the wrong status can significantly alter liability, which is why the IRS pays close attention. This mistake often shows up after major life changes like marriage or divorce.

It can be confusing, like what if you got married on December 31, 2025, or you were issued a new Social Security number?

For these hypotheticals, It's not uncommon for taxpayers to file two returns when they should only file one.

Here, it's worth slowing down and confirming the correct option. Filing incorrectly doesn't guarantee an audit, but it does increase the likelihood.

(And if you were curious, a marriage on the last day of the year still changes your filing status to married for all of 2025, and taxpayers should submit just one correct yearly return, even if they change their name or are issued a new Social Security number.)

Incorrect EITC calculation

The earned income tax credit (EITC) is frequently miscalculated according to the IRS. Errors often happen when income changes year to year, or when taxpayers incorrectly count qualifying children.

Because the EITC can result in a refund even if you owe little or no tax, mistakes tend to draw attention. Claiming more than you qualify for can delay your refund and raise audit risk.

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Overstating the child tax credit

The child tax credit is another area where small errors commonly cause big problems. Eligibility rules, income thresholds, and dependent requirements all matter.

Mistakes often occur when parents split custody of children or have other unusual circumstances. If the IRS sees conflicting claims for the same child, it may trigger audits for both returns.

Claiming dependents you don't qualify for

Claiming too many dependents, or claiming someone who doesn't meet the IRS definition, is another common audit trigger. This can include adult children, relatives, or dependents claimed by more than one taxpayer.

The IRS uses matching systems to identify duplicate or questionable claims, and mismatches often lead to follow-up questions.

Not reporting all income

Underreporting income is one of the fastest ways to trigger IRS scrutiny according to TurboTax. Banks, employers, brokers, and other institutions send copies of your personal income forms directly to the IRS.

If a form is missing from your return, automated systems, like the IRS Dependent Database (DDb) or Return Review Program (RRP) can catch it. Even overlooked income from old brokerage accounts or education savings withdrawals can lead to a letter audit.

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Not following foreign bank account reporting rules

TurboTax says improper foreign bank account reporting is another common audit trigger.

U.S. taxpayers with foreign assets face strict reporting requirements. Accounts above certain thresholds must be disclosed, including the institution and highest balance during the year.

Failing to report foreign assets properly can result in penalties. Even if you do comply, the asset holdings alone may invite closer review due to heightened enforcement in this area. Accuracy and full disclosure are critical.

Blurring personal and business expenses

In the Age of Remote Work, blurring the line between business and personal spend may be a casual sin of which we're all lightly. Yet here, TurboTax also advises caution.

Experts say excess or unusual business spend is a big red flag, especially for the self-employed.

The IRS will compare your deductions against industry norms. (Not many business analysts claim $18,000 desks for their home office.)

The IRS compares deductions against industry norms using occupational data.

Deductions that significantly exceed typical ranges, particularly for meals, travel, or vehicles, may prompt additional review. Detailed records and clear documentation help support legitimate claims.

Higher household income

Does your household earn more than $200,000 a year? Congrats. Your odds of getting audited are 4x higher than households earning less, according to TurboTax.

Audit rates increase as income rises, as higher earners typically file more complex returns which naturally increases the chance of error or discrepancy.

Additionally, the IRS also focuses enforcement where it believes recoveries will be larger. As income climbs, so does potential recovery, even when everything is legitimate.

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Not filing

Failing to file a required tax return doesn't make the problem disappear. It lands you in hot water, placing you into IRS compliance programs where the agency may reconstruct income, assess tax on your behalf, and apply penalties.

While the IRS may not always label this process an "audit," the result is similar: scrutiny, enforcement authority, and potential financial consequences. Filing on time, even without full payment, keeps you in control.

Bottom line

Most IRS audits begin with simple, preventable issues, not deliberate malfeasance. Accurate reporting, careful credit calculations, and timely filing go a long way toward keeping your return clean.

If taxes are part of a bigger financial reset, separating savings and tax money can help. Some filers open a new account specifically for taxes, estimated payments, or refunds — one small step that makes compliance easier and mistakes less likely.

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