# Am I Going to Get Audited by the IRS? A Guide for Content Creators

Wondering if the IRS might audit you? It’s a common concern for content creators and influencers, but with the right knowledge, you can stay prepared and worry-free.

by [Sydney Pitynski](https://cookiefinance.co/author/spitnski/ "Posts by Sydney Pitynski")

“Am I going to get audited by the IRS?” We get this question from content creators and influencers ALL THE TIME. It’s completely normal for content creators and influencers to worry that they’re going to make a mistake that will alert the IRS. It’s okay. Take a breath. We’re here to help.

An audit is never fun, but it doesn’t have to be something to fear. Here are some common questions and answers about tax audits so you can be prepared for anything that comes your way.

## **What Triggers an IRS Audit?**

First, let’s clear up a myth. Getting audited doesn’t always mean you’ve done something wrong. The IRS randomly selects some tax returns for review, but others are flagged based on certain patterns. Here are a few things that might increase your chances:

- **Unreported Income:** Platforms like OnlyFans, YouTube, Twitch, and Patreon report your earnings to the IRS. Payment processors also report income if you reach certain thresholds. If you don’t report all your income, that’s a red flag.
- **Large Deductions:** Claiming big deductions compared to your income might make the IRS take a closer look. For example, writing off a $10,000 camera on $30,000 of income could raise questions. If you have an expense like that, you may want to write off a portion over a period of years (that is called depreciating property).
- **Consistently Reporting Losses:** If you report a loss year after year, the IRS may suspect your business is actually a hobby. Being classified as a hobby means you can no longer claim tax deductions on your tax return.
- **Rounded Numbers:** If all your expenses end in zeros ($500, $1000, etc.), it looks less like real tracking and more like guessing. The numbers matter, so be sure to get them right!
- **Cash Payments:** If you primarily receive payments in cash (like tips or off-platform payments), the IRS might want proof you’re reporting everything correctly.

## **What Happens if I Get Audited?**

You’re likely imagining the IRS showing up at your door to arrest you, but don’t worry! It doesn’t actually work that way. During an audit, you’ll need to provide documentation and clear information about your income and expenses.

Here’s what happens through 3 different audits:

1. **Correspondence Audit:** With this type of audit, the IRS sends you a letter asking for documentation (like receipts or bank statements) to support certain deductions or income.
2. **Office Audit:** You’ll be asked to visit an IRS office to discuss your taxes in person and bring the necessary documents.
3. **Field Audit:** A rare, more serious audit where an IRS agent visits your home or business to review records.

## **How to Reduce Your Audit Risk**

The best way to avoid an audit is to keep accurate records and file your taxes honestly.

**Report All Your Income:**

Content creators and influencers earn their income from a wide variety of sources. That’s great because you’ve diversified, but you are also responsible for tracking it all! That means 1099s from YouTube, Twitch, and TikTok, brand deals and sponsorships, and even tips.

**Track Your Expenses:**

Business expenses, write-offs, tax deductions. These words all mean the same thing! They are expenses you incur for your business that lower your taxable income. As a content creator, your expenses can be pretty unique and there are many to keep track of.

**Separate Business and Personal Finances:**

Opening a separate bank account for your content creation business is an amazing way to keep your business and personal finances separate. Running all your income and expenses through a business account simplifies tracking.

**Be Realistic with Deductions:**

Write off expenses that are directly related to running your business. A portion of your rent for a home studio? Yes. Travel costs for a conference you attended? Totally!

**Work with a Tax Professional:**

Hiring a pro who understands your line of work is beneficial and can help you navigate your taxes effectively.

## **What If I Owe Taxes?**

If you realize you’ve underreported income or made a mistake, don’t ignore it. The IRS offers payment plans and options to correct past tax returns. Addressing the issue early can prevent penalties.

## **Conclusion**

Audits aren’t as scary as they sound, and most content creators never face one. The key is to stay organized, report income accurately, and only claim deductions that make sense for your business.