When it comes to doing your taxes, you don’t want to make any mistakes. By accidentally misreporting something, you can find yourself under investigation by the Internal Revenue Service.

An audit by the IRS reviews an individual’s books, accounts, and financial records. This review ensures that the information on their tax return is correct. Sometimes audits are done by random selection, but other times, they occur when there is a suspected issue.

To try and avoid the process, it’s best to make sure all your information is correct from the start. TurboTax reports there are four red flags to avoid that trigger an investigation.

Not reporting your entire income

This is the most common way you will trigger an audit from the IRS. Every place that you receive income will report it to the IRS. If you have one source of income, it’s easier to file your taxes. But if you have multiple, from gig work or old brokerage accounts, you will forget to include something.

TurboTax notes that the IRS will match the reported items to a person’s return. If they see something missing, they will automatically conduct at least a letter audit.

Breaking rules on foreign accounts

When it comes to foreign accounts, one must follow the requirements of the Foreign Account Tax Compliance Act.

It forces banks in other countries to recognize American asset holders and provide information to the IRS. And American taxpayers must report foreign assets worth at least $50,000 on the new Form 8938.

That rule is new, as individuals earlier did not have to report foreign accounts. Instead, they simply had to check a box saying they had one.

You face an audit if you don’t check the box. You must also recognize the institution. Additionally, share the highest dollar amount in the account from the year prior.

Liberal business tax deductions

The IRS will closely monitor business expenses. They want to ensure people are not writing off personal costs as business tax deductions.

TurboTax writes, “The agency uses occupational codes to measure typical amounts of travel by profession. A tax return showing 20% or more above the norm will get a second look.”

When it comes to a company vehicle, it is important to specify how the vehicle is used. This information should accompany any tax write-offs. Cars aren’t generally strictly used for work.

Earning more than $200,000

An income of $200,000 seems to be the threshold that triggers an audit. Last year, the IRS audited 1% of people earning less than that figure. It audited 4% of people earning more.

Higher income increases the likelihood of a complicated tax return. This is especially true if a person has multiple sources of income.

When it comes to business tax returns, the IRS audited 1% of corporations. These corporations had less than $10 million in assets. It audited 17.6% of corporations that had more than that, according to TurboTax.