The IRS Can Flag Your Taxes For Audit If You Don't Submit These Forms

Tax season is well underway, with many people who have already filed eagerly anticipating their return. However, if you haven't filed yet, don't worry. After all, it's completely understandable that you aren't incredibly eager to dive into the tedious process that filing your taxes presents. That said, it may be worth checking out what you need to know about IRS tax refunds in 2025 so that you're up to date on any changes to the system in the new year before you get to work.

Because filing taxes can be a tedious process, it's important to fully comprehend that missing important forms can lead to making unintended mistakes — and these can lead to unwanted and burdensome consequences. Due to the IRS upgrading its system in recent years, your tax return can actually be flagged for an audit in 2025 if you fail to include all of the necessary employment documents like 1099s and W-2's of your previous working year.

Getting audited by the IRS is something that nobody wants to deal with. Although the likelihood of an individual getting audited by the agency is around 0.4% as of 2022, that small percentage does not completely absolve it from the realm of possibility. That being said, what exactly happens when you get audited by the IRS, and what does this situation even entail?

If you do get audited by the IRS, according to information from the agency's official website, you will receive a letter in the mail from the agency. The IRS usually selects individuals for an audit based on a random selection process, or in the case that an issue has been found on one of your previous returns. That said, once you receive this notification, the contents of it will generally include things like contact information for the agency, the reason for the audit, requests for certain documents required from you, as well as response instructions and other information of that nature. Documents submitted will be reviewed, and further contact will be made as stated in the initial form mailed to you.

Besides regular employment tax forms like a W-2, if you performed any self-employed freelance or contract work in 2024 you will also need to submit a 1099-NEC form, which is typically provided by the company that you did the work for. However, if the company did not provide you with one, unfortunately you are still responsible for accounting for all the money you made. Also, if you made any money off of investments, you will need to report a 1099-B form in your tax return, and if you made money made from dividends, a 1099-DIV form must be included as well.

For those who made money from real estate, you'll need to submit a 1099-S form. Also, if you came up on some big wins from gambling, you'll need to report that to the IRS as well via a W-2G form. Outside of this, retirees that earned income from Social Security will need to file a 1099-SSA form, and potentially a 1099-R for taking money out of retirement funds like IRAs. All in all, for further information on tax documents you need to file properly in 2025, visit the IRS website. However, if you're still unsure about whether or not you've collected all the necessary tax documents prior to filing your return, it might be a good idea to consult with a certified tax professional.