What might trigger a tax audit?

Claiming a high number of deductions can indeed trigger a tax audit. When taxpayers claim an unusually high number of deductions compared to others with similar income levels, it raises a red flag for tax authorities. This is because the IRS uses various benchmarks and statistical models to analyze tax returns for anomalies that deviate from the norm. If a taxpayer's return appears significantly different from what is typical for their income bracket, it can initiate further scrutiny, leading to an audit.

In contrast, filing taxes late may result in penalties or interest but does not necessarily trigger an audit on its own. Receiving a tax refund typically indicates that the taxes were filed correctly, which does not raise concerns about accuracy or legitimacy. Contributing to a retirement fund is generally seen as a tax advantage and does not raise flags for audits, as it's a common practice that many taxpayers take advantage of.