The 7 IRS Audit Triggers Most Likely to Hit You in 2026
Jordan Reyes, EA · April 14, 2026 · 7 min
After the IRS funding boost, audit rates are climbing for high earners and certain Schedule C profiles. Here's where the heat is.
1. Schedule C with consistent losses across 3+ years. The IRS hobby-loss rules give them ammunition.
2. Round numbers everywhere. $5,000, $10,000, $15,000 deductions read as estimates rather than records.
3. Home office claimed alongside an employer W-2 with no clear self-employment angle.
4. Charitable deductions exceeding 30% of AGI without documentation.
5. Cryptocurrency disposals not reported. The Form 1099-DA mandate makes this trivial to detect.
6. Foreign account or income disclosures missed (FBAR, Form 8938, Form 5471).
7. Partnership K-1s not reconciling to your individual return.