Most IRS audits don’t start because someone broke the law.They start because something doesn’t make sense on paper. For real estate investors, certain patterns quietly raise red flags year after year — until the IRS finally takes a closer look. The good news is that most of these issues are avoidable  with the right structure and documentation. Below are the most common IRS audit red flags I see for real estate investors, and how to stay compliant without fear. Red Flag #1: L