a. Ownership of a foreign mutual fund and failure to file the special forms required for foreign passive investment companies.
b. Ownership of foreign partnerships and foreign corporations in which you own the majority interest.
c Large. Inheritances or gifts received from nonresident donors when you fail to file form 3520 to report those gifts or inheritances.
d. Unusually large income from outside the US with unusually large deductions offsetting most of that income so little tax is paid. This might not cause an audit if your paid substantial foreign income taxes abroad and you are claiming a foreign tax credit to offsett your US tax on that income.
e. Other audit triggers from the Huffington Post.
Remember they can audit your return up to three years after it is filed and up to six years if you omitt 25% of your income. If you want to avoid IRS audits or need representation when the IRS does audit your expat or international tax return email us at : email@example.com