Core Insights - The IRS audits only 0.40% of individual tax returns, but the fear of audits remains significant, especially among seniors [1] Common IRS Audit Triggers for Seniors - Failing to report all retirement income, including 1099-R distributions, pension income, taxable Social Security earnings, and investment income can lead to audits [2] - Incorrectly reporting required minimum distributions (RMDs) from traditional 401(k) or IRA accounts, which are required at age 73, may incur a 25% excise tax for unwithdrawn amounts [2] - Claiming excessive charitable donations without proper receipts or valuations can trigger an audit [2] - Inflating medical expense deductions by including non-qualified or reimbursed expenses can cause issues with the IRS [2] - Claiming large business losses, especially misclassifying hobby expenses as business expenses, can lead to scrutiny [2] - Errors related to rental property investments, such as miscalculating depreciation or failing to report rental income, are common audit triggers [2] - Filing status errors, including double-claiming dependents or incorrect head of household status, can be flagged by the IRS [2] - Math or income discrepancies, even minor errors like a misplaced decimal point, can trigger audits [2]