How a Self Employed Earns Himself an IRS Audit
There are many IRS audit flags that the areas use on self-employed business owners. For example, if a self-employed person reports too low gross revenue, then the areas might decide argued that person.
By definition, the business is supposed to be for profit, so if the business owner has never made any profit and his or her income keeps going down, then the IRS might feel like there is a problem there.
Numbers also must add up. If a self-employed person receives multiple 1099 forms, then the gross revenue that he or she reports to the IRS must be at least that amount, usually more.