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Tax season can feel stressful, and getting audited by the IRS can make it even worse. While the IRS doesn’t audit most people, certain mistakes on your tax return can raise red flags. These mistakes may lead to an audit.

If you reside or operate a business in Atlanta, GA, here is what will likely trigger an audit in 2025. By knowing what the IRS is looking for, you can steer clear of some common pitfalls and feel more confident about your taxes.

In this blog, we’ll look at the most common IRS audit triggers for 2025. We’ll also explain how they affect people in Atlanta and share simple tips to avoid them. If you want help with your taxes, check out our tax preparation Atlanta, GA, and we’ll help you stay organized, follow the rules, and still get the deductions you deserve.

Why the IRS Audits Taxpayers

The truth is that the IRS doesn’t select people for audits randomly. Instead, it relies on computers to identify tax returns with errors, odd numbers, or missing information. In 2025, technology and AI will help the IRS catch these problems more quickly.

So, if you live in Atlanta or are a small business operator there, be sure to double-check your return. Be truly honest and accurate when in the tax preparation, and this also lets you avoid IRS problems.

IRS Audit Triggers 2025

 Here’s what could trigger an audit of your taxes this year.

1. Unreported Income

Atlanta residents are also turning to digital payment tools, gig work, and freelance jobs more than some in other cities. When it comes to reported income, the IRS is vigilant. Companies and services must also send forms, including W-2s, 1099-NECs, and 1099-Ks. The I.R.S. compares those with your tax return. If you fail to report all of your income, even from small side jobs, an audit can be triggered.

2. Too Many Business Deductions

As a small business owner in Atlanta, GA, you can decrease your taxable income by taking advantage of deductions. But making too many deductions, or unrealistic ones, can attract scrutiny. For example, trying to expense your personal meals, luxury travel, or most of your household expenses as business costs can land you in a world of hurt.

3. Home Office Deductions

The home office deduction is a popular tax benefit in Atlanta, with many people working from home. But it’s often misused. If you overstate the amount of square footage or overstate your costs, the I.R.S. would probably question it.

4. Large Charitable Contributions

Charitable giving is the norm in Atlanta, but major donations that don’t align with your income could spark the IRS’s interest. You can deduct donations, but the IRS wants disinterested and reasoned proof of them.

5. Cryptocurrency Transactions

Cryptocurrency remains a leading issue for tax audits in 2025. The IRS, in fact, specifically inquires about digital assets on your tax return. Failure to report crypto income, trades, or profits can result in an audit.

6. Mismatched Information

The IRS will eventually catch wind of discrepancies between what you report and what your employer, bank, or investment firm reports. For instance, if there is a discrepancy between the income your W-2 reports and what you reported, it can trigger an audit.

How Atlanta, GA, Taxpayers Can Stay Away From IRS Audits in 2025

No one can eliminate the risk of being audited, but you can minimize the odds by taking the time to prepare carefully and by getting professional assistance. Here are tips to help you navigate over time:

• Report All Your Income Correctly: Just make sure you declare every dollar you earn — from a job, from freelance work, or from digital payments. In Atlanta’s booming gig economy, it’s all too easy to overlook small payments — yet every bit of income counts.
• Keep Clear and Organized Records: Your most effective defense is good recordkeeping. Keep receipts, invoices, and digital bank statements all year long. This will make it easier to support your deductions if the IRS inquires.
• Hire a Tax Preparer in Atlanta, GA: Working with an experienced tax preparer in Atlanta, GA can help ensure that your taxes are done properly. A professional can help you claim legitimate deductions and not claim some that may be suspicious and trigger an audit.
• Stay Updated on IRS Changes: Tax laws change every year. Starting in 2025, new rules on deductions, credits, and income limits could impact how you file. A well-informed tax consultant in Atlanta can help you stay abreast of such changes.

State-Level Note: Georgia Audits

Georgia’s Department of Revenue (GDOR) does its own audits and may use federal data to spot issues at the state level. Atlanta taxpayers should keep their state records matching their federal filings. If you get a notice from GDOR, respond quickly. If your state and federal filings don’t match, consult a tax professional with experience in Georgia audits.

Use Caution With Deductions

These common deductions need special attention:

• Home office deductions: Only claim the space you use just for work.
• Vehicle expenses: Keep a log of your miles if you use your car for business.
• Travel and meals: Deduct only business-related expenses, and save your receipts.
• Charitable donations: Keep acknowledgment letters for larger donations.

By making sure your deductions are valid and well-documented, you lower your chances of getting audited.

The Role of Small Business Owners in Audit Risk

Small business owners in Atlanta face challenges when it comes to IRS audits. Since many mix personal and business expenses, the IRS pays extra attention to their returns. Some common mistakes include overstating business losses to reduce taxes, failing to report 1099 forms for contractors, and not keeping personal and business bank accounts separate. To avoid these mistakes, it’s a good idea to work with accounting companies in Atlanta that specialize in small business tax preparation. These experts can help you avoid costly errors and keep your business in good standing.

What to Do If You Are Audited

No need to panic should you receive an IRS audit notice in 2025. First, go over the notice thoroughly to grasp what the IRS is inquiring about. Next, gather all the required documents – receipts, bank statements, and any proof related to the matter. It’s also a good idea to find someone (like a local tax preparer or tax attorney in Atlanta) who can address the IRS directly so you don’t have to. Last but not least, be sure to respond promptly. Ignoring the IRS or procrastinating will only make things worse.

Final Thoughts

An IRS audit sounds scary, but the vast majority result from minor missteps that are simple to avoid. In Atlanta, GA, the best way to minimize your chances of being audited is to make sure to keep thorough documentation, take all proper deductions, and let a professional tax consultant handle your taxes.

If you want peace of mind during tax season, CCMorganAcc is here to help. Contact our Atlanta office today for expert tax preparation and audit-proof filing.