Kiplinger

9 IRS Audit Red Flags for Retirees

In 2017, the Internal Revenue Service audited only 0.60% of all individual tax returns, and the vast majority of these exams were conducted by mail. So the odds are generally pretty low that your return will be picked for review.

That said, your chances of being audited or otherwise hearing from the IRS escalate depending on various factors. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Check out these nine red flags that could increase the chances that the IRS will give the return of a retired taxpayer special, and probably unwelcome, attention.

Making a Lot of Money

Thinkstock

Although the overall individual audit rate is only about one in 167 returns, the odds increase dramatically as your income goes up, as it might if you sell a valuable piece of property or get a

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger3 min read
Cryptocurrency: Stay In? Get Out? How to Decide?
Warren Buffett is famous for saying “Only when the tide goes out do you discover who's been swimming naked.” If you invested in cybercoins, the news has not been good lately. Are you wearing your bathing suit?  What to do?  Is time to take your profi
Kiplinger5 min read
As the Market Falls, New Retirees Need a Plan
Anyone newly retired or nearly so must feel like they have the worst timing in the world. A portfolio tends to be largest near retirement, just before those savings are about to be drawn down. These days, however, most portfolios have lost value; the
Kiplinger5 min read
4 Steps for Managing Income Withdrawals in Retirement
If you’re like most Americans nearing retirement, you’re worried about whether you have enough savings. In fact, only 22% of those approaching retirement believe they’ve saved enough to retire comfortably. At a time when the stock market is down, inf

Related Books & Audiobooks