Knowing what is on the IRS radar will help you be prepared if you're targeted for an audit.
Have you ever been warned by your CPA that “this could be a red flag for the IRS!”? Fear of those pesky red flags can cause you to overlook or not report legitimate deductions. Don’t think for a minute that the IRS doesn’t encourage and play to your “red flag” anxiety.
At the same time, there are areas you should know that can cause your return to get a second pass through the IRS system. You should be aware of these situations so that you will be sure to have accurate documentation in the (admittedly small) occasion that your tax return has the dubious honor of being selected for audit.
While you don’t want to intentionally wave a red flag, you should never be intimidated into waving a white flag to sacrifice a deduction to which you are rightfully entitled. If you’re not sure, consult with an experienced professional who does not fear standing up to the IRS.