10 IRS Audit Red Flags Every Muggle Should Beware Of

1. Missing income

Oh the horror! The IRS is always on the lookout for missing income and they have information returns that make it oh so easy for them to catch you. So don't forget to report that freelance income or those investment earnings or you might find yourself in a sticky situation. Remember mismatched data is the No. 1 thing that gets taxpayers into trouble.

2. Unreasonable tax breaks

No one likes a show off especially when it comes to claiming tax deductions. If your deductions are way too high for your income level the IRS is going to raise an eyebrow. So unless you're secretly a millionaire make sure you have detailed substantiation to back up your claims. Don't give the IRS a reason to say 'Avada Kedavra' to your deductions.

3. Round numbers

Accurate numbers are the key to keeping the IRS at bay. So when you're filing your tax return make sure your deductions and expenses aren't suspiciously round. The IRS knows that real life isn't all neat and tidy so it's best to use actual expenses rather than estimates. Don't gamble with round numbers unless you want to be part of the 'audit lotto.'

4. Earned income tax credit

Ah the earned income tax credit. It's a great way for low to moderate income workers to get some extra cash. But be warned the IRS keeps a close eye on this credit because it tends to attract some 'bad actors.' If you're claiming the EITC make sure you're eligible and have all your paperwork in order. Otherwise the IRS might become your own personal Dementor.

5. High income individuals and large corporations

While us mere mortals might be worried about the IRS high income individuals and large corporations have been the primary targets of recent IRS enforcement. They have to deal with fancy partnerships and complex tax situations. So let's take a moment to pity them shall we?

6. Technology and enforcement

The IRS is getting more high tech these days. They're ramping up their service technology and enforcement to catch those sneaky tax evaders. It's like they've got their own Sorting Hat to separate the good taxpayers from the bad ones. Just remember you want to be in the House of Hufflepuff not Slytherin.