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[Music] watchguard tax services powered by mayfair inc desires to help and provide information that is helpful to taxpayers have you ever been curious about how the irs chooses the tax return to audit our eas usually are able to tell exactly why they did and point out red flags to look out for in the future we also have the expertise to challenge the audit itself in this video we wanted to go over six common red flags for audits the irs has a computer system called discriminant information function or dif diff thats specifically designed to detect anomalies in tax returns it scans every tax return the irs receives diff looks for things like duplicate information as well as deductions and credits that just dont make sense the computer compares each return to those of other taxpayers who earned approximately the same income if the system flags your return it prompts review by human agents having large schedule c expenses can be a flag to the irs the irs may choose a taxpayers return f
