The IRS will catch and correct basic math errors in individual tax returns. But its computer system can also spot more serious irregularities that can trigger a full examination.

Here are some red flags that could catch the eye of IRS auditors:

Unreported Income

The IRS gets copies of your W-2 as well as various 1099 forms that report income from interest, dividends, and retirement account distributions. Its computers can catch mismatches between the income you list on your return and what your employer and financial institutions are reporting. The IRS will then notify you of any discrepancy along with the additional tax or penalty you might owe. If you forget to report some income and catch the mistake before the IRS does, you can file an amended return.

Unusually Large Charitable or Other Deductions

You may come under IRS scrutiny if you have deductions, say, for medical bills or gifts to charity, that are disproportionately large compared to your income. Of course, your claims could be legitimate. If so, make sure you have the documentation to back up your deductions.

Cryptocurrency

The IRS has made no secret that it's looking closely at virtual currency transactions to uncover unreported income. The agency considers virtual money as taxable property. Near the top of Form 1040, just below your name and address, the IRS asks if you have received, sold, sent, exchanged, or otherwise acquired a financial interest in any virtual currency.

Writing Off Losses From a Hobby

You can deduct losses from a business, but not a hobby. The IRS keeps an eye out for taxpayers who deduct losses for what appears to be a hobby. To be considered a business, a venture must be done with the intention of making a profit and be run in a business-like manner.

Neglecting To Take RMDs

Make sure you take required minimum distributions from your accounts — or risk getting audited in the future. You must take RMDs annually from traditional IRAs and workplace retirement accounts, such as 457(b), 403(b), 401(a), and 401(k) plans when you reach a certain age based on your date of birth. Check when you may be required to take RMDs. If you're still working when you hit the RMD age, you don't have to take distributions from your current employer's retirement plan. But you will need to take distributions from any former employer’s plan.

How Much Is My RMD?

Try our RMD calculator to estimate future RMDs.