Here’s what HIVE AI had to say about “What are the most common IRS audit triggers for 2025 returns and how can I reduce my audit risk while staying compliant?”:
Most common IRS audit “triggers” (high-level) for 2025 returns
- Information mismatch (W-2/1099 vs. what you reported). The IRS selects some returns for examination using computerized screening and by comparing what’s on the return to information it receives (such as Forms W-2 and 1099). 3
- Refundable credits and filing-status/dependent claims that often require documentation. Correspondence examinations commonly focus on eligibility for credits like EITC, Child Tax Credit/Additional Child Tax Credit, Premium Tax Credit, and education credits, and the IRS may hold the refundable portion pending verification. 4 5 6
- Wage/withholding items that “appear incorrect” (especially when they affect refundable credits). The IRS uses notices like CP75D to request proof of income/withholding and that can affect EIC, dependents, and other refundable credits. 7
- Schedule C / Schedule F returns and unreported-income concerns. IRS examination guidance highlights probing income, resolving “large, unusual and questionable” items, and (when there’s a reasonable indication) using financial-status techniques to evaluate possible unreported income. 8
- Returns that are outside statistical “norms,” plus related examinations. The IRS states that some returns are chosen via random selection and computer screening against “norms” for similar returns, and also via related examinations (e.g., partners/investors connected to another exam). 9
- Positions that resemble negligence indicators (often overlapping with “audit risk”). Treasury regulations describe negligence as including failing to report income shown on an information return and taking deductions/credits that would seem “too good to be true” without a reasonable attempt to verify correctness, among other items. 1
Notes:
- A refund by itself is not necessarily an audit trigger, and filing an amended return doesn’t affect selection of the original return (though amended returns can be screened too). 9
Reducing audit risk while staying compliant (what matters most)
- Match third-party reporting. Because the IRS compares returns to Forms W-2/1099 it receives, minimizing mismatches is one of the biggest controllable drivers of audit/notices. 3
- Have substantiation for credits, dependents, filing status, and withholding. IRS correspondence audits for refundable credits and PTC are documentation-driven; if you can’t substantiate, the IRS may disallow the audited items. 3 5
- Keep adequate books and records and substantiate items properly. Regulations treat failure to keep adequate records/substantiate items as negligence, and the IRS can require specific records by notice. 1 2
- For business returns, be prepared to support income and “large, unusual, and questionable” items. IRS examination guidance specifically calls out income probes and LUQ items as part of case development. 8
If you tell me which of these categories you’re closest to (W-2 only, self-employed/Schedule C, or claiming refundable credits like EITC/CTC/PTC), I can narrow this to the few highest-frequency triggers for your fact pattern.
Sources
1 – Treasury Regulation 1.6662-3 📄 Summarize
2 – Treasury Regulation 157.6001-1 📄 Summarize
3 – Understanding your CP75 notice
4 – Letter or audit for EITC
5 – Understanding your CP06/CP06A notice
6 – Understanding your CP75A notice
7 – Understanding your CP75D notice
8 – 4.16.1 SEP Responsibilities and Case Development
9 – IRS audits
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