Here are red flags for everyday filers as the IRS intensifies audits of wealthy Americans.

• Certain areas, regardless of income, may still be subject to IRS scrutiny, even as the agency works on plans to reduce audits for taxpayers earning less than $400,000.
• Some red flags could include unreported income, including cryptocurrency earnings and unreasonable tax breaks.
• According to the latest Databook, the IRS examined 0.44% of individual returns and 0.74% of corporate returns for all returns filed between 2013 and 2021 as of the end of fiscal 2023.

Despite the IRS's ongoing efforts to prevent increased audits on taxpayers earning less than $400,000, certain aspects of your tax return may still attract attention, according to experts.

The Treasury Inspector General for Tax Administration (TIGTA) reported that the IRS has made "minimal advancements" in establishing the technique for calculating its audit coverage in accordance with a directive from the U.S. Department of the Treasury.

In August 2022, Congress approved $80 billion in IRS funding, with tens of billions designated for enforcement. However, the Treasury issued a directive to the IRS that the funds couldn't be used for increased audits on small businesses or households earning less than $400,000 annually.

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The IRS concurred with TIGTA's suggestions and intends to record the evolution of its audit procedures, according to the report.

The Treasury Department announced on Friday that $1.3 billion has been recovered from "high-income, high-wealth individuals." Meanwhile, the IRS has continued to focus enforcement efforts on higher earners, large corporations and complex partnerships.

Treasury Secretary Janet Yellen stated on Friday in Austin, Texas that it is unfair for everyday Americans to pay taxes while struggling financially, but some of the wealthiest in the country have managed to avoid paying taxes.

Tax experts advise that red flags for IRS audits are not limited to income level.

It's easy for IRS to catch missing income

Experts warn that even though the IRS is primarily targeting wealthy Americans, everyday taxpayers could still face an audit if their returns are inaccurate.

Employers and financial institutions report your earnings directly to the IRS using information returns such as Forms W-2 or 1099. The IRS can easily flag incomplete filings if one common red flag is missing income.

According to Eric Hylton, national director of compliance for Alliantgroup and former IRS commissioner for the agency's small business and self-employed division, the IRS has a significant return on investment.

Crypto investors could see enforcement

Crypto investors will also be subject to income reported via information returns.

In July, the IRS finalized cryptocurrency tax guidance, which included guidelines for digital asset brokers. Starting in 2026, mandatory yearly reporting will phase in, covering activity from 2025.

"James Creech, an attorney and senior manager at accounting firm Baker Tilly, previously stated to CNBC that everyone has been anticipating the enforcement activity's arrival," according to a previous statement.

Taxpayers need 'to support every line item'

Another common audit trigger is unreasonable deductions, said Hylton with Alliantgroup.

If you earn $75,000 annually and deduct $15,000 or $20,000 for charitable purposes, it could attract IRS attention, according to him.

To support every line item when claiming a tax break, Hylton said that detailed paperwork is necessary. During an audit, a credit or deduction could be disallowed without proof.

Despite areas of heightened scrutiny, IRS audits are still rare.

According to the IRS's latest Databook, between 2013 and 2021, the agency examined 0.44% of individual returns and 0.74% of corporate returns.