Red Flags that can trigger IRS audit…

**10 Red Flags That Could Trigger an IRS Tax Audit in 2022**
**Accounting for pandemic-inspired grants, loans and tax credits could make it a tricky year for many**
**By Lori Ioannou, The Wall Street Journal, March 5, 2022**

**1. Education tax credits**

**2. Small businesses, especially S Corps, sole proprietorships and partnerships making $100,000 a year that are cash-intensive**

**3. Child tax credit. All recipients of the child tax credit are urged to go to []( and the IRS Child Tax Credit Update Portal, where they can find the correct amount of their advance payment.**

**4. Cryptocurrency transactions. It is up to individuals to aggregate all of this information on Form 8949.**

**5. Earned-income tax credit**

**6. Large charitable contributions**

**7. Rental income. All rental income is generally considered passive income, not active income.**

**8. Home-office deductions. Millions of people who worked remotely last year during the Covid-19 pandemic aren’t eligible. Only people who were self-employed in 2021 can claim the deduction.**

**9. Early withdrawals from IRAs or 401(k)s**

**10. Health premium tax credit. Recipients can estimate their total allowable credit on [](—search for “tax credit.”** [end quote]

This article has a lot of detail, including specific red flags. If you have any of the categories, it is worth reading the entire article.