10 Commonly Overlooked Issues that Can Trigger IRS Audits

Numerous issues can trigger scrutiny from the Internal Revenue Service (IRS). While some of these issues are well-known (i.e., failing to report employment or business income), others are more likely to lead to trouble for unsuspecting taxpayers. Learn more from Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Did You Overlook Any of These Issues When You Filed Your Taxes in 2025?

The Internal Revenue Code (IRC) is extremely complex. It is also just one of multiple sources of U.S. taxpayers' annual filing obligations. As a result, filing mistakes are common, and many taxpayers don’t realize that they are behind on their federal reporting or payment obligations until they hear from the IRS.

However, ignorance is not an excuse for non-compliance. Even when U.S. taxpayers make honest mistakes, they remain fully liable for the taxes they owe. Additionally, reporting and payment violations trigger immediate penalties (and interest). This makes facing an IRS audit risky in any scenario, and when facing scrutiny from the IRS, taxpayers cannot afford to make any assumptions about what they owe.

With this in mind, here are 10 commonly overlooked issues that can trigger IRS audits:

• Reporting non-employment earned income (i.e., independent contractor income)
• Reporting gaming and gambling winnings
• Reporting realized investment gains (i.e., gains from selling Bitcoin or stocks)
• Properly calculating itemized deductions (i.e., the home office and charitable deductions)
• Properly claiming eligibility for credits and exemptions (i.e., credits for sick and family leave)
• Disclosing offshore accounts and other foreign financial assets
• Ensuring that recipients of charitable donations are tax-exempt
• Taking mandatory retirement withdrawals (or “required minimum distributions”)
• Double-checking figures calculated by a tax preparer or tax software
• Dealing with tax forms that you received after tax day

If you have overlooked one (or more) of these issues, what should you do? The answer to this question depends on your specific circumstances. In some cases, filing an amended return and paying the amount due (including penalties and interest) will be enough. But in others, additional steps will be necessary.

What You Need to Know if the IRS is Auditing Your Tax Returns

You will also need to take additional steps if you are already facing scrutiny from the IRS. Once the IRS initiates an audit, several options that might have otherwise been available go away. In this scenario, you need to be very careful to ensure that you are dealing with the IRS effectively; and, if you cannot afford to pay what you owe, you may need to consider options such as targeting a settlement, seeking an installment agreement or submitting an offer in compromise (OIC).

Get Personalized Legal Advice from Experienced Virginia Tax Lawyer Kevin E. Thorn

Do you need to know more about how to resolve an unexpected tax issue with the IRS? If so, we can help, and we encourage you to get in touch. To request a confidential consultation with experienced Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 703-752-3752 or contact us online today.