In the last few years, the IRS has been hiring a massive number of revenue agents to conduct more aggressive and sophisticated tax audits. The IRS will request proof of deductions, income, or any items reported on your tax returns.
The IRS will also look for any signs of inconsistency such as lifestyle habits for signs of unreported income by reviewing records, asking probing questions, etc.
- Low scores of your tax returns during computer screening
- Random selection
- Document matching
- Inside leads
- Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.