It can be overwhelming to figure out tax preparation when an IRS audit is possible. In Naperville and elsewhere, some common tax mistakes can increase the risk of unwanted attention from the IRS.
Underreporting income may cause red flags
Common triggers for an IRS audit include underreporting income. The IRS has copies of all W-2 and 1099 forms and can cross-reference the income you report with what third parties submit. Any mismatch will likely flag your return. This can happen when freelancers or gig workers forget to report some 1099s or when people assume a side hustle “doesn’t count.” Any taxable income not reported can increase your audit risk—even if the mistake was unintentional. Whether it’s a small payment from contract work or earnings from digital platforms, everything counts.
Overstating deductions or credits
Also beware: claiming deductions or tax credits that are too high compared to your reported income may draw scrutiny. That means inflated charitable contributions, exorbitant business expenses, or aggressive education deductions. But even if your claims are legitimate, they still raise suspicion without documentation. A tax attorney can help ensure that your deductions are properly substantiated and comply with tax laws, reducing the risk of audits. It’s important to back up every deduction with receipts or other records and to prove you qualify for every credit you take. Guessing or estimating can create problems later, especially if the IRS requests proof.
Little math errors that make a big difference
Tax software and e-filing have cut the risk of arithmetic errors, but mistakes do happen—especially when you do it by hand or without current instructions. A single transposed digit can mess up your entire return and get you a review. These kinds of mistakes suggest carelessness or, worse, a deliberate effort to manipulate figures—neither of which are welcome with auditors. Even minor errors can lead to amended returns, delayed refunds, or follow-up inquiries.
Cryptocurrency and other overlooked income
The IRS has focused on cryptocurrency because more taxpayers are investing in it. Some Naperville residents are unaware that gains from selling, trading, or using crypto for purchases must be reported as income. Not disclosing such transactions can have expensive consequences. Similar issues apply to other alternative income streams such as rental income, gig work, or online sales via marketplaces.
Consequences of being audited
Not every audit happens because of fraud, but the experience can still be long, invasive, and stressful. A detailed documentation audit may include responding to specific IRS inquiries or attending interviews. Errors may result in back taxes, interest, and penalties. More serious situations can even lead to legal consequences. For business owners and self-employed professionals, the reputational damage alone can be devastating, leading to the loss of client relationships or future opportunities.
What expert help can do
This is where professional tax support becomes necessary. A good preparer does more than fill out your return—they make sure it’s complete, compliant, and backed by the appropriate documentation. Having a professional on your side means all income is reported accurately, deductions are valid, and your tax return is defensible if ever questioned. This is especially helpful for people with complex financial situations, those who own businesses, or anyone experiencing major life changes like marriage, divorce, or retirement.
With expert support, you can also keep up with tax law changes and avoid decisions based on outdated or incorrect information. Tax professionals know which deductions and credits are being closely watched and how to structure your return to reduce audit risk. And if you do face an audit, having a trusted expert on your side can ease the process, help you respond quickly, and prevent further issues. That kind of reassurance is difficult to put a price on.
Why local knowledge matters
National tax firms are helpful, but a local preparer gives you more relevant insight. Someone experienced in income tax preparation Naperville–based understands the specific red flags in the area and how to address them proactively. Firms such as Elder Hanson & Company combine technical tax expertise with regional familiarity to help Naperville residents not just complete their tax filings, but do so strategically and confidently.
Avoiding trouble is the smartest way
Avoiding an audit isn’t just about playing it safe—it’s about being smart. Double-check your return, avoid shortcuts, and always file on time. Keep detailed, accurate records of deductions, business income, investment gains, and any income from alternative sources. And most importantly: don’t guess. If something is unclear or complicated, talk to someone who understands tax law and current filing requirements.
Partnering with a tax professional does more than help you meet deadlines—it gives you peace of mind. In Naperville, where financial situations vary widely and audit triggers can come from many directions, that extra level of support isn’t just convenient. It’s essential. And it’s how you stay ahead of potential problems before they ever appear on the IRS’s radar.
