2. Unreported income

I bet you don’t want to be called for an IRS audit! Because if you think about leaving a little money from your total income and decreasing the taxes, you must know it’s not a good idea. In case you didn’t know, the IRS compares your actual income to the one from the previous year.

If there is a big difference between them, you can be sure they’ll notice, and you’ll be called for an audit. If you happen to make money out of freelancing, you should mention that too.

Because 1099 reports nonwage income from things like stocks and freelancing. One sort of 1099, the 1099-NEC, regularly reports sums paid to autonomous temporary workers. Don’t forget to report all of your income sources if you don’t want to become a suspect of fraud.