Tax season can feel like walking a tightrope—one wrong step and you could get a letter from the IRS. That could mean an audit, penalties or extra stress. Most people try to file their taxes correctly and on time, but certain mistakes can still cause problems. Knowing what the IRS looks for can help you avoid trouble.
Here are some common triggers to watch out for, especially if you live in Washington.
Underreporting income
One of the biggest IRS red flags is missing income. People often forget to report money from side jobs, investments or rental properties. For example, if you work freelance and don’t file a 1099 form, the IRS might take notice. In Washington, where many people earn through tech work, stock options or contract gigs, it’s important to report every source of income—even smaller ones.
Excessive deductions or credits
Claiming significant deductions or tax credits that don’t match your income can raise questions. Common examples include large donations, high business expenses or a home office deduction that doesn’t follow the rules. If something seems off, the IRS might check your return. Always keep records to support your claims.
Filing mistakes or missing information
Simple errors can cause big issues. Math mistakes, missing forms or incorrect Social Security numbers are easy to make but can lead to problems. Incomplete returns also raise red flags. Take time to review your return carefully. Using tax software or a professional can help catch errors before you file.
Filing late or not at all
Not filing taxes or missing the deadline is one of the most common problems. It leads to automatic fees and interest. In Washington, where there’s no state income tax, some residents mistakenly think they don’t need to file at all. But federal taxes still apply. Even a basic return helps you stay on track.
If you’re unsure about your taxes or get a letter from the IRS, it’s a good idea to get help. A tax attorney may explain your options and help protect your rights. Avoiding these common mistakes can give you peace of mind this tax season.