IRS Upgrade: Top Audit Triggers for W‑2 Employees (and How to Avoid Them Legally)

CPA Stephen Lee explains that the IRS has upgraded its systems to flag common W‑2 return mistakes and outlines key triggers for manual review, especially for employees with side hustles, crypto activity, or home office claims. Major red flags include underreporting income that doesn’t match W‑2/1099/brokerage data, large or disproportionate deductions, consistent business losses that can be reclassified as a hobby, improper refundable credit claims (EITC, child, education), large cash transactions or unexplained deposits, and simple issues like math errors, missing forms, and incomplete returns. He also warns about incorrect dependents or filing status, unreported foreign accounts, abusive tax shelters and “Dirty Dozen” scam patterns, and using a “ghost preparer.” The takeaway: prioritize accuracy, consistency, and documentation to stay audit-ready.

00:00 IRS Upgrade Warning

00:29 Who I Am

00:54 Underreported Income

01:21 Unusual Deductions

01:49 Side Hustle Losses

02:07 Credit Claim Triggers

02:30 Cash Deposit Scrutiny

02:50 Simple Filing Errors

03:04 Dependents and Status

03:20 Foreign and Shelter Risks

03:37 Dirty Dozen Scams

03:56 Ghost Preparer Red Flags

04:09 Three Key Takeaways

04:29 Subscribe and Wrap Up

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On this channel, Stephen Lee shares proven strategies to help high earners, business owners, and professionals keep more of what they make, minimize taxes, and build lasting wealth.

Whether you’re optimizing your S-Corp, investing smarter, or managing 1099 income, this channel gives you the tools to make confident money moves — backed by real client experience.

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The information provided on this channel is for general information and entertainment purposes only. It is not intended to serve as legal, financial, or tax advice. You should not act or refrain from acting on the basis of any content included on this channel without seeking appropriate legal, tax, or other professional advice specific to your individual circumstances. The use or reliance on any information contained on this channel is solely at your own risk.

Most people think taxes are something you deal with once a year in April, but business owners, freelancers, and investors need to pay taxes four times per year. This video explains how to calculate and pay your quarterly estimated taxes, including using IRS Direct Pay. Learn how to avoid tax penalties by understanding your estimated taxes and ensuring you meet your obligations.

🔔 Subscribe for more tips and strategies tailored for business owners and high earning professionals.

On this channel, Stephen Lee shares proven strategies to help high earners, business owners, and professionals keep more of what they make, minimize taxes, and build lasting wealth.

Whether you’re optimizing your S-Corp, investing smarter, or managing 1099 income, this channel gives you the tools to make confident money moves — backed by real client experience.

Subscribe for smart, actionable advice — and take control of your financial future.

The information provided on this channel is for general information and entertainment purposes only. It is not intended to serve as legal, financial, or tax advice. You should not act or refrain from acting on the basis of any content included on this channel without seeking appropriate legal, tax, or other professional advice specific to your individual circumstances. The use or reliance on any information contained on this channel is solely at your own risk.

🚨 $1.2 BILLION in Unclaimed IRS Refunds — Don’t Miss the April 15 Deadline 🚨

Over 1.3 million Americans still haven’t filed their 2022 tax returns — and the IRS is holding $1.2 BILLION in unclaimed refunds.

If you don’t act by April 15, 2026, your refund becomes property of the U.S. Treasury… permanently.

In this video, I break down:

✔️ Who is at risk of losing their refund

✔️ How much money you could be owed (median $686+)

✔️ Hidden credits like the Earned Income Tax Credit (up to $6,935)

✔️ What happens if you haven’t filed recent tax returns

✔️ Step-by-step how to still claim your refund

⚠️ This is one of the most overlooked IRS deadlines — and it could cost you thousands.

00:00 Unclaimed Refund Warning

00:50 Deadline and Refund Amounts

01:19 EITC and Refund Holds

02:09 How to File Without Docs

02:40 Rental Loss vs Depreciation

03:19 Senior Standard Deduction

03:45 Car Loan Interest Cutoff

04:11 Final Deadline Reminder

Subscribe for more tips and strategies tailored for business owners and high earning professionals.

On this channel, Stephen Lee shares proven strategies to help high earners, business owners, and professionals keep more of what they make, minimize taxes, and build lasting wealth.

Whether you’re optimizing your S-Corp, investing smarter, or managing 1099 income, this channel gives you the tools to make confident money moves — backed by real client experience.

Subscribe for smart, actionable advice — and take control of your financial future.

The information provided on this channel is for general information and entertainment purposes only. It is not intended to serve as legal, financial, or tax advice. You should not act or refrain from acting on the basis of any content included on this channel without seeking appropriate legal, tax, or other professional advice specific to your individual circumstances. The use or reliance on any information contained on this channel is solely at your own risk.