Your tax preparer is your advocate, but they are also bound by professional ethics and strict IRS circulars. When you say certain phrases, you force them to either fire you or file a return that is legally defensible but practically guaranteed to trigger an audit. In 2026, the IRS has deployed new AI-driven text analysis to find “lifestyle gaps” and inconsistencies in returns that used to fly under the radar.
There is a difference between aggressive tax planning and admitting to tax fraud in a casual conversation. Your accountant cannot “unhear” what you tell them. If you admit that your “business trip” was actually a family vacation, they cannot legally sign your return with that deduction included. To keep your file clean and your preparer on your side, avoid these eight audit-triggering confessions.
1. “I Didn’t Keep Receipts, But I Can Estimate It”
The IRS despises round numbers. If you tell your preparer, “Just put down $5,000 for travel,” you are practically begging for an audit. While the Cohan Rule historically allowed for some estimation, it does not apply to travel, meals, or entertainment expenses, which require strict documentation under Section 274(d). Specific numbers like “$4,321” look real; “$5,000” looks fake. Never admit you are guessing; always reconstruct your expenses from bank statements before the meeting.
2. “I Use My Business Truck for Everything”
Claiming 100% business use for a vehicle is the single easiest red flag for an auditor to spot. If you tell your CPA, “I don’t have another car,” you have just admitted that your “work truck” is also your grocery-getter. The IRS knows that 100% business use is statistically rare for a single-vehicle household. Admitting personal use allows your preparer to calculate a defensible percentage rather than a fraudulent 100%.
3. “I Lost Money Again, But I Enjoy the Work”
If you tell your preparer that you run a business “for fun” or “to meet people,” you are describing a hobby, not a business. The IRS “Hobby Loss” rules prevent you from deducting losses if you don’t show a profit in three out of five years. Admitting you lack a “profit motive” forces your preparer to disallow your loss deductions entirely.
4. “That Cash Job Was Off the Books”
There is no such thing as “off the books” to a licensed CPA. If you deposited that cash into a bank account, the IRS can see it. If you spent it, your “lifestyle audit” will show you spending more than you earned. Telling your preparer about unreported cash puts them in a legal bind; they must include it or refuse to sign the return. Reporting all income is the only way to avoid tax evasion charges.
5. “My Home Office Is Also the Guest Room”
The home office deduction requires exclusive and regular use. If you admit, “My kids play video games in there at night,” you have just disqualified the entire deduction. Never describe your workspace as “multi-purpose.” If it isn’t 100% for business, it isn’t a write-off.
6. “I Don’t Have a Mileage Log, But I Drive a Lot”
The IRS requires a “contemporaneous” mileage log—meaning a record created at the time of the trip. Reconstructing a log at the end of the year is technically allowed but highly suspicious. Telling your preparer “I have no log” leaves them with zero defense if the IRS asks for proof. Start a log on January 1st, not April 14th, as recordkeeping is your only defense.
7. “I Donated $500 Cash at Church Every Week”
High charitable contributions relative to income are a computer-generated audit trigger. If you claim to donate 20% of your income in cash without a single receipt, the IRS will automatically flag it. Bank records are required for any cash donation, and a written acknowledgment is required for any single gift over $250. Do not claim undocumented generosity; it looks like tax evasion.
8. “Can We Just Backdate That?”
Asking a professional to backdate a document is asking them to commit a felony. Whether it is an IRA contribution or a corporate minute, documents must reflect reality. This question instantly destroys trust and often results in the preparer firing you as a client on the spot.
Keep It Professional, Keep It Legal
Your tax preparer is not your confessor. Their job is to minimize your tax liability within the law, not to help you hide reality. Present them with organized, documented facts, and let them apply the tax code safely. Honesty is cheaper than defense fees.
Did you ever get fired by a CPA? Leave a comment below—tell us what happened!
You May Also Like…
-
10 Tax Filing Errors Retirees Make During Early Preparation
- Tips for Preparing and Filing Your Small Business Taxes Correctly
- The “Itemizer Trap”: Why Seniors with Under $40,000 in State Taxes are Switching to the New ‘OBBBA Standard’
- 8 Ways Charitable Giving Can Still Reduce a Late-Winter Tax Bill
- The $6,000 Secret: How the OBBB Act Wipes Out Taxes for 88% of Seniors This Month
Read the full article here
