Here are five things that can trigger an audit (from Money magazine) :
1. Itemized deductions. The IRS is more likely to scrutinize returns with itemized deductions than those that take only the standard deduction.
2. Hobby losses. If you are holding down a full-time job but are running a side business, you may be targeted for an audit if your pet project posts a loss year after year.
3. Home office deductions. If your place of business is also your residence, be careful with that home office deduction.
4. Casualty losses. The rules regarding casualty losses are very specific.
5. High income. Not only are your taxes higher, you are chances of being audited are 1 in 20 if you earn $100,000 or more. "Higher income earners are more likely to be audited because there is more tax money at stake," Tyson said.
Yikes!!! Three of these apply to me. However, I have an accountant do my taxes every year (it saves me tons of time and headaches) and we're pretty conservative. Besides, I keep very good records, so I feel I don't have much to worry about.
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