From Self-Employment to Crypto, Clear Start Tax Outlines the Filing Mistakes Most Likely to Trigger IRS Audits in 2025
IRVINE, CA / ACCESS Newswire / April 18, 2025 / Now that the 2025 tax filing deadline has passed, Clear Start Tax is alerting individuals and small business owners to the IRS's heightened focus on audit triggers. With increased funding and expanded enforcement tools, the IRS is paying closer attention to specific red flags that could result in audits, penalties, or even collection actions.
From unreported income and excessive deductions to cryptocurrency activity and improperly claimed credits, taxpayers face a growing list of issues that can put them on the IRS's radar. Clear Start Tax encourages taxpayers to file accurately and seek expert guidance, especially if they've made mistakes in the past or are carrying unresolved debt.
The IRS Is Watching More Closely Than Ever
In 2024, the IRS confirmed a renewed commitment to enforcement, particularly in areas involving high-income earners, complex business structures, and digital asset reporting. But audits aren't limited to the wealthy-everyday taxpayers can face scrutiny for simple filing errors or overlooked income.
"We're seeing a much more focused IRS," said the Head of Client Solutions at Clear Start Tax. "That means even small discrepancies or aggressive deductions could lead to bigger problems. Understanding what the IRS is targeting in 2025 is key to protecting yourself."
Top IRS Audit Red Flags for 2025
Clear Start Tax identifies the following as high-risk triggers for taxpayers and enforcement this year:
Underreported or unreported income, especially from freelance or gig work
Excessive or unsubstantiated deductions, including home office and business expenses
Large charitable donations that don't align with reported income
Improperly claimed Earned Income Tax Credit (EITC) or Child Tax Credit
Failure to report crypto transactions or digital asset gains/losses
High Schedule C activity without supporting documentation
Unfiled prior-year returns
Avoiding Mistakes-and Resolving Existing Issues
Clear Start Tax advises taxpayers to review returns carefully, keep documentation for all deductions, and ensure all sources of income are reported. For those with existing IRS debt or unresolved filings, taking action now is critical to avoid penalties and potential enforcement.
"We work with clients every day who've made honest mistakes-or who didn't realize what they owed until it was too late," said the Head of Client Solutions. "The good news is that the IRS offers programs to help people get back on track-and we're here to help guide them through it."
What to Do If You're Facing an IRS Audit in 2025
An IRS audit can be stressful, but it doesn't have to be overwhelming, especially when handled early and properly. Clear Start Tax helps taxpayers respond to audit notices, gather supporting documentation, and communicate directly with the IRS to resolve issues before they escalate.
Whether it's a Schedule C audit, a review of unreported income, or questions about credits and deductions, the firm provides experienced audit support and representation, helping clients navigate the process confidently and avoid unnecessary penalties.
About Clear Start Tax
Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry.
Need Help With Back Taxes?
Click the link below:
https://clearstarttax.com/qualifytoday/
Contact Information
Clear Start Tax
Corporate Communications Department
seo@clearstarttax.com
(949) 535-1627
SOURCE: Clear Start Tax
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