Top five ways to make sure that you get audited by the IRS (Part #1: don't report all your income)
Updated: Jan 30
Feeling lonely? How about a visit from the IRS?
You might think the IRS has a building full of auditors peering over your tax return and waiting for you to slip up. Well, they do, but in recent years the IRS has focused on finding compliance errors that are easy to spot and simple to enforce. It might take the IRS a year or more to catch up with you, but when they do you will owe not just the back taxes, but also fines and interest that might add up to more than the taxes you skipped paying. But if you still really want to get the IRS’s attention, you can read this series on how to make certain they notice you.
#1 Don’t report all your income
One way you might try to lower your tax bill is by conveniently forgetting to report ALL your income. Don’t worry, the IRS already knows what you made. The small side-gig you forgot about, the gains from stocks you sold, your unemployment income, and any retirement funds you cashed in - they are all reported to the IRS. A good rule to remember is this: if the money you made ever went into your bank account, the IRS knows about it. And since it’s so easy for their systems to see that you ‘forgot’ to report a source of income, expect to get their attention quickly.