How To Avoid An IRS Audit, Part 2

Here are a couple more areas that you need to be concerned about in order to avoid having your tax return scrutinized by the IRS.

Home office deductions.

While not as big a red flag as in the past, because more people work at home, if your return is examined and you claim a home office deduction you should be able to document that your employer requires you to work from home. Self-employed people who use a portion of their home to run their businesses are generally able to deduct their office expenses. Freelancers or people who use their home office part of the time may be able to deduct a portion of their costs.



Self-employment

Because there are more opportunities for misstating income and deductions, self-employed individuals are more likely to be audited.