With tax season nearing, people are know concentrating on preparing and filing their tax returns. People are aware that the IRS may conduct tax audits on anyone and are careful to avoid such instances if they can. One way to do it is by trying to blend in with what the general population usually does when it comes to preparing those tax returns. Standing out from the rest is not usually a good thing when it comes to taxes as it may generate considerable attention from the tax people. Here are some of the possible red flags that may sometimes warrant a tax audit from the IRS.

Deductions From Home Office Related Costs

More and more people are now using their home as a business office. And because of this, some are entitled to deductions on their tax returns that may be considered as home office related costs and expenses. But there are times when some people claim personal expenses as part of their deductible business expenses. Such instances have made the IRS more suspicious of home office deductions and usually take a closer look at them than they usually do. Home business owners should try to become more aware of what may be considered as legitimate home office deductions and what is not. Failure to do so may also increase the risk of the IRS conducting a tax audit in case they find certain irregularities on the tax filing.

Too High Charitable Deductions

One of the more common deductions claimed by many on their personal income tax return concerns charitable deductions. About 90 percent of people claim deductions on their charitable donations during the tax year. Some people may overstate it which can sometimes lead to a tax audit. On average, charitable donations claimed by taxpayers range within 3 percent of their income. Anything higher than that may alert the IRS of something suspicious that may lead to a tax audit.

Unusual Business Related Deductions

There are business related deductions that are considered common or ordinary and there are those that may be considered quite unusual by the IRS. Finding an unlikely business related deduction can sometimes also put the taxpayer are risk of being audited. It can be a possible red flag and the taxpayer might need to prepare to convince the IRS that it is a legitimate deduction.