Congrats!! You have made it to retirement, now life will be free and easy – if only the IRS would stay out of your business. Most people worry about the IRS in their working years, not in retirement. Here are a few Red Flags to avoid:

Claiming Large Charitable Write-Offs
We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if you’re charitable deductions are disproportionately large compared with your income, it raises a red flag.
That’s because the IRS knows what the average charitable donation is for people at your income level. Also, if you don’t get a written appraisal for donations of property valued at more than $5,000, or if you fail to file IRS Form 8283 for noncash donations over $500, you become an even bigger audit target.
Running a Business
Many people like to turn their hobbies into a side-hustle in retirement, but you need to be careful. Schedule C is a treasure trove of tax deductions for self-employed people. But it’s also a gold mine for IRS agents.

Not Taking Required Minimum Distributions
Most people know that the age to take their Required Minimum Distribution has been pushed back to age 73, but if your need to take a RMD, make sure you take the proper amount or you will pay a penalty. Those who fail to take the proper amount can be hit with a penalty of as much as 25% of the shortfall (50% for years prior to 2023).

There are many more red flags out there – these you should be able to avoid.

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