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Something unusual is happening with federal student loans right now, and most borrowers have absolutely no idea how much money they stand to lose. The federal government has the legal authority to take a significant chunk of your paycheck every single pay period without any court involvement whatsoever.You do not need to be sued, served with legal papers, or set foot in a courtroom before the wage deductions start showing up automatically. Millions of borrowers already sit in the danger zone, and an often-overlooked temporary pause is the only thing standing between them and smaller paychecks right now.If you carry federal student loan debt and have fallen behind on payments, here is exactly what you need to know before that window closes for good.How administrative wage garnishment targets your paycheck directlyThe process is called Administrative Wage Garnishment, and it gives the U.S. Department of Education direct power over your earnings without a judge involved. Under federal law, the government can order your employer to withhold up to 15 percent of your disposable pay once your loan officially enters default status.Disposable pay is what remains after legally required deductions like federal income taxes, state taxes, local taxes, and Social Security contributions are subtracted from earnings.Voluntary deductions like health insurance premiums, retirement contributions, and union dues are not factored into the disposable pay calculation at all under federal rules. Your employer cannot legally fire you solely because the federal government is garnishing your wages to collect on your defaulted student loan debt obligation.When federal student loan default triggers automatic collectionsA federal student loan enters default after you miss payments for 270 consecutive days, which works out to roughly nine months of zero payments made. Once that threshold is crossed, the Department of Education can initiate garnishment proceedings without filing a lawsuit or obtaining any kind of court judgment against you.You will receive a written notice at least 30 days before garnishment begins, giving you a narrow but important window to respond or request a hearing. The notice comes from the Department of Education or its collection contractors.It doesn’t come from your employer, and it arrives only at your last known mailing address. If your address on file with the government is outdated, you may never see that critical notice before deductions start hitting your paycheck.The staggering scope of the student loan default crisisApproximately 5.5 million federal student loan borrowers are already in default, according to an analysis of federal data published by the American Enterprise Institute (AEI). Another 3.7 million borrowers are more than 270 days late on their payments, meaning they are either already in default or teetering at the edge.Related: The biggest change to student loans in 45 years is hereAn additional 2.7 million borrowers are in the early stages of delinquency, putting them on a clear path toward default if they fail to take action. Altogether, roughly 12 million borrowers are either delinquent or in default, representing more than one in every four federal student loan borrowers across the country.Preston Cooper, who studies student loan policy at AEI, told NPR the country has about 12 million borrowers right now in some stage of distress on their federal student loans.Low-income households face the steepest consequences from garnishmentAdvocacy groups including Protect Borrowers, the American Federation of Teachers, and the NAACP sent a joint letter urging the Education Department to halt involuntary collections.Garnishing wages from people who already cannot afford basic daily expenses pushes them further into financial hardship rather than toward meaningful debt repayment outcomes.A 15 percent cut to your take-home pay can quickly destabilize your household budget, especially when housing, food, and child care costs remain elevated overall.Unfortunately, that garnishment timing coincides with rising health care costs, noted by NPR, for many of these same borrowers as they head into 2026, said Betsy Mayotte, president and founder of The Institute of Student Loan Advisors.

The student loan crisis is not just about debt totals; it is about real paychecks shrinking for millions of Americans.Chay_Tee/Shutterstock

There’s a temporary loan repayment pause most borrowers don’t know aboutOn Jan. 16, 2026, the U.S. Department of Education announced a temporary delay of involuntary collections on federal student loans, PBS reported, including all administrative wage garnishment activities.The news came just days after the department had started sending garnishment notices to approximately 1,000 defaulted borrowers the week of Jan. 7.More Personal Finance:Why selling a home to your child for a dollar can backfireElon Musk says ‘universal high income’ is comingFTC, 21 states sue Uber over ‘shady’ subscription billingThe delay affects both Administrative Wage Garnishment and the Treasury Offset Program, which allows the government to seize your tax refunds and Social Security payments.According to the department, the pause allows time to implement major student loan repayment reforms mandated by the Working Families Tax Cuts Act specifically. The department has not set a specific date for when involuntary collections will resume, which means the pause could end with very little advance public notice.What the Working Families Tax Cuts Act changes for your loan repayment optionsThe Working Families Tax Cuts Act, passed by Congress on July 4, 2025, reduces the number of federal student loan repayment plans to just two. Borrowers will soon choose between a single standard repayment plan or a new income-driven repayment plan designed specifically for greater affordability and simplicity.The new income-driven plan waives unpaid interest for borrowers who make on-time payments when their monthly amount does not fully cover all accrued interest charges.The plan also includes small matching payments from the Department of Education to help ensure your outstanding principal balance decreases every single month going forward.This new repayment plan is scheduled to become available to borrowers starting on July 1, 2026, giving the government time to build out the necessary infrastructure. The law also gives borrowers a second chance to rehabilitate a defaulted loan, which doubles the previous single-opportunity limit that existed under prior rules.What the government can seize from you beyond your regular paycheckThe Treasury Offset Program allows the government to withhold your federal tax refunds and, in participating states, state tax refunds. It can then redirect that money toward your defaulted loan balance.If you receive Social Security retirement or disability benefits, the government can also offset up to 15 percent of those monthly payments toward your outstanding debt.  Related: Social Security’s $6,000 senior deduction has a hidden costThe Education Department has also authorized guarantee agencies to begin involuntary collection activities on loans under the Federal Family Education Loan Program structure. On top of all garnished amounts, borrowers in default face collection costs of up to 24 percent of their total loan balance, which dramatically increases their debt.How loan collection costs compound the financial damage over timeThose collection costs are not a fixed fee but rather a percentage of your outstanding loan balance that gets added directly to your total debt obligation. A borrower who owes $30,000 in defaulted federal student loans could see up to $7,200 in collection fees stacked on top of that original balance amount.Rehabilitating the loan reduces collection costs to 15 percent, while consolidating through a federal Direct Consolidation Loan lowers those collection charges to 18 percent.Acting before involuntary collections resume can save you thousands of dollars in fees that would otherwise become part of your total repayment obligation going forward.  Every month you wait in default increases the total amount you will ultimately need to pay back to the federal government under the current collection rules.Five steps to get out of student loan default before garnishment resumes for goodIf you are currently in default on your federal student loans, the temporary pause gives you a limited window to take decisive action right now.Loan rehabilitation gives you the cleanest path out of default statusYou can rehabilitate your defaulted loan by making nine consecutive, timely, and affordable monthly payments that are calculated based on your current income. Once rehabilitation is complete, the default is removed from your credit report, and garnishment stops permanently.Then you get a genuine clean start on regular repayment. The Working Families Tax Cuts Act now allows borrowers to rehabilitate a defaulted loan a second time, which was not previously available.Federal Direct Consolidation can bring your loans out of defaultYou can consolidate your defaulted loans into a new federal Direct Consolidation Loan, which immediately brings the loans out of default status upon completion of processing. Consolidation does not remove the default from your credit history.It does, however, stop active garnishment and restore your eligibility for federal repayment plan options going forward. Borrowers with Parent PLUS loans who consolidate before July 1, 2026, maintain access to income-driven repayment plans under the new law’s provisions.You can request a financial hardship hearingIf garnishment would prevent you from affording basic living expenses, you have the legal right to request a hearing to challenge the garnishment amount itself. You must provide documentation of your household income and your monthly expenses, including rent or mortgage payments.The government may reduce the garnishment amount or stop it entirely if your hearing demonstrates that the standard 15 percent deduction creates genuine financial hardship.Update your contact information on StudentAid.govThe Education Department has lost contact with more than half of all federal student loan borrowers because of outdated mailing addresses and email information stored on file.If your address is wrong, you may miss the official 30-day garnishment notice that gives you the legal right to request a hearing or take corrective action. Log in to StudentAid.gov and your loan servicer’s website today to make sure every piece of your contact information is current, accurate, and up to date.Income-driven repayment can shield you from falling back into defaultOnce your loans are out of default, enrolling in an income-driven repayment plan can cap your monthly payments at a percentage of your discretionary income. Income-based repayment calculates your payment as 10 or 15 percent of discretionary income.This equals your adjusted gross income minus 150 percent of the federal poverty line.  This approach typically results in lower monthly payments than wage garnishment because your adjusted gross income is usually lower than the disposable pay calculation used.The clock is running for every stduent loan defaulter who doesn’t act right nowThe Department of Education’s temporary pause on involuntary collections has no announced end date, but the reforms it awaits take effect in July of 2026.Once the department finishes implementing the Working Families Tax Cuts Act provisions, there is nothing preventing a rapid resumption of wage garnishment and tax refund offsets.Approximately 195,000 defaulted borrowers had already received official 30-day notices from the U.S. Department of the Treasury before the January 2026 pause was implemented.All 5.3 million defaulted borrowers were expected to receive notices that their earnings would be subject to administrative wage garnishment later this coming summer season.The Committee for a Responsible Federal Budget criticized the delay, with president Maya MacGuineas arguing there is no justification for emergency action on student debt.If you are in default and waiting for someone to tell you what to do next, the answer is clear: Act now while this temporary pause still protects you.Related: SAVE Plan ends with bad news for student loan borrowers​

Gold has had a brutal week. The metal that spent all of 2025 rewriting record books just posted its worst seven-day performance in more than four decades. It shed 11% to close at $4,497 an ounce on March 20. That is a drop of more than $500 from where it started the week and a loss of over 14% since the U.S.-Israel strikes on Iran began in late February.The last time gold fell this sharply in a single week was 1983. Back then, Middle Eastern oil producers dumped their gold reserves after oil revenues collapsed. The parallel to today is uncomfortable. Once again, a Middle East crisis is driving the sell-off. But this time the mechanism is different, and understanding why matters for anyone trying to figure out where gold goes next.Why gold is falling when it should be risingThe paradox at the center of this sell-off is what makes it so disorienting. Gold is supposed to be the ultimate crisis hedge. Wars, inflation fears, and geopolitical chaos are precisely the conditions that have historically sent investors rushing into bullion. Instead, gold has dropped every single week since the conflict began.The explanation lies in oil. The Iran conflict has sent Brent crude above $112 a barrel. That surge is feeding directly into inflation expectations. Higher inflation gives the Federal Reserve less room to cut rates. Traders who had priced in multiple Fed cuts for 2026 have now swung to pricing in a 50% hike odds by October, according to Bloomberg. That is a seismic shift in a matter of weeks.More Gold:Gold, silver surge after record drop flashes technical signalSilver and gold tumble triggers major reset for mining stocksJ.P. Morgan revises gold price target for 2026Gold pays no interest. When real yields rise and the dollar strengthens, holding gold becomes progressively less attractive against Treasury bonds. The 10-year yield climbed to 4.2% this week. The Dollar Index hit 99.9. That is a double headwind that overwhelmed whatever safe-haven demand the conflict might have generated.”This sharp decline in gold reflects a confluence of factors: large-scale risk asset liquidations, a hawkish shift in Fed expectations, and a stronger dollar,” explained Pepperstone strategist Dilin Wu. She described the move as “a pricing logic adjustment rather than a reversal of the long-term trend.” That distinction matters a great deal for what comes next.Where gold is heading in the weeks aheadThe next key level to watch is $4,361. That represents the 50% retracement of gold’s entire 2025 rally from its September origin. Technical analysts at The Gold Forecast noted March 20 that gold is currently “suspended in open air” between the broken $4,654 support floor and that next meaningful level. A test of $4,361 looks likely if oil stays elevated and rate hike bets keep building.Below that, the 200-day moving average near $4,200 is the critical line. It separates a bull market correction from something more structurally damaging. A sustained break below $4,200 would open a path toward $3,500, the very base of gold’s 2025 bull run.The near-term catalyst is the Fed. Any signal that policymakers are willing to look through the oil-driven inflation spike would remove the primary headwind on gold. Conversely, hawkish commentary would likely extend selling toward that $4,200 level.Gold ETFs have shed more than 60 tonnes over the past three weeks, as I reported on March 20. That pace of institutional exit reflects genuine repositioning, not just tactical profit-taking.The medium-term picture: 1 to 3 monthsThe medium-term outlook hinges on two questions. How long does the Iran war last? And does the Fed blink?If the conflict moves toward a ceasefire and oil retreats, rate hike expectations would quickly reverse. That would restore gold’s primary tailwind of falling real yields and likely trigger a recovery toward $4,800 to $5,000. History supports this pattern. Gold fell 25% peak to trough in 2008 before launching to new highs. The 17% March 2020 Covid dump preceded a 50% rally.The more difficult scenario is a prolonged conflict that keeps oil above $100 and inflation running hot. Central bank buying, which ran above 1,000 tonnes in 2025, remains a structural floor under prices. Yet it may not be enough to offset institutional ETF outflows if the macro headwind persists for months.

Any signal that policymakers are willing to look through the oil-driven inflation spike would remove the primary headwind on gold.Lemanski/Bloomberg via Getty Images

Where analysts see gold by year-endThe major bank forecasts remain bullish. J.P. Morgan holds a year-end 2026 target of $6,300, citing central bank demand and ETF inflows. Wells Fargo has a $6,100 to $6,300 range. BNP Paribas raised its 2026 average forecast by 27% and flags a peak above $6,250 as probable.Ed Yardeni, one of Wall Street’s most closely followed strategists, had a $6,000 target. He said this week he is considering lowering it to $5,000 if gold continues falling, despite conditions that should be driving it higher.The two scenarios investors are watchingBull case: Iran ceasefire by mid-year, oil retreats toward $85, Fed holds steady, real yields fall, gold recovers toward $5,500 to $6,000 by December.Bear case: Conflict drags on, oil holds above $100, Fed hikes once or twice, dollar stays elevated, gold tests $4,000 and potentially lower.The structural foundations that drove gold’s 65% gain in 2025 have not disappeared. De-dollarization trends, U.S. fiscal deficits, and central bank accumulation remain intact. What has changed is the near-term macro environment. Right now, macro is in charge. When that logic inverts, the recovery could be as sharp as the sell-off that preceded it.Related: Gold and silver bugs face grim reality check

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.There are certain areas in our home where you simply don’t want to skimp on quality products, and bedding is one of them. Nothing gets in the way of a good night’s rest, which means when we hit the hay, we’re not jumping into a bed with scratchy sheets or under a comforter that leaves us shivering. That said, just because we love plush pillows and a super supportive mattress doesn’t mean we want to spend a fortune to create the sleep experience we want, which is why when our favorite retailers have sales on home products and furniture, we’re the first ones to start filling up our cart. And now, thanks to Wayfair’s Spring Cyber Week sale, you can score some quality bedding that’ll make it easy to score a great night’s sleep, night after night, for only a fraction of what you’d usually pay. Right now, Wayfair is selling the Bedsure Duvet Cover Set for 84% off. The set, which usually retails for $140, is available for just $30 during Wayfair’s Spring Cyber Week sales event. Bedsure Duvet Cover Set, $23 (was $140) at Wayfair

Courtesy of Wayfair

Shop at WayfairWhy do shoppers love it?Although duvets can be a pain to set up, when inserted correctly, they can absolutely transform your sleeping area. Made of premium polyester microfiber material, this duvet cover, which comes prewashed, is exceptionally soft, ensuring you’re nice and cozy as you sleep underneath it. The fabric is lightweight and breathable, so you won’t feel weighed down by it once it has a duvet insert inside, and you can stay comfortably warm without overheating throughout the night. It has a soft texture that’s smooth to the touch, and doesn’t make any loud, crinkling sounds that some similar products on the market do. In fact, it’s OEKO-TEK certified, which means it passes the highest standards for testing, and it’s safe and gentle enough for even the most sensitive skin types. The cover has eight interior ties which keep the insert secure inside, keeping the insert evenly distributed throughout instead of getting balled up in one corner or area of the cover. It also has a zipper closure for easy insertion and removal. In addition to the duvet cover, the set also comes with two matching pillow shams, which add an element of cohesiveness to the bedding. But what’s even more amazing is the huge variety of colors. With over 33 colors to choose from, you can find the perfect neutral option to match a beige or brown interior, or you can opt for the vibrant yellow or orange options to a fun pop of color to your bedroom. And, in cases of spills or messes, you’ll be pleased to learn that the set can easily be removed and thrown into the washing machine for a quick clean. Related: Wayfair is selling a $140 down alternative comforter, which doubles as a duvet insert, for $49The set also comes in a variety of sizes. You can get it for as small as a twin sized bed up to a California king. Details to knowMaterial: Polyester microfiber material.Sizes: The duet set is available in twin, full, queen, oversized queen, king, oversized king, and california king sizes. Details: The duvet set has eight interior ties to keep it secure once inserted, and a zipper closure for easy insertion and removal.Colors: 33.Care: Machine washable.Shoppers like the softness of the fabric, and appreciate the gentleness of the material, saying it “feels good” against the skin. They are impressed with the vibrancy of some of the more brightly colored options, but also say the neutrals look stunning in person as well. It’s smooth and keeps them warm throughout the night.  “The quality is not cheap,” one shopper said. Shop more deals Wayfair Basics 1800 Series Microfiber Sheet Set, $30 (was $138) at WayfairEddie Bauer Printed Sherpa Throw Blankets, $21 (was $59) at WayfairBecky Cameron Down Alternative Comforter and Duvet Insert, $134 (was $207) at WayfairAlthough duvets can be a pain, with the right insert and cover, they look quite beautiful in the bedroom. Try the Bedsure Duvet Cover Set for yourself to see the effect first hand. 

The IRS processed roughly 266 million tax returns during fiscal year 2024, and not every one of those returns passed through the system cleanly.More than half a million were pulled aside for a closer look, resulting in billions of dollars in recommended additional taxes owed to Uncle Sam. If you filed a return recently, you are probably wondering right now whether yours could land on the wrong side of that selection process.Your odds are low on paper, but certain red flags on your return could change those odds faster than you realize right now. The real question you should be asking yourself is not whether audits happen, but whether your return has the kind of profile that attracts one.Here is what the latest IRS data reveal about who gets audited, what triggers that scrutiny, and exactly how you should prepare yourself.How the IRS decides which returns get flaggedThe IRS does not select most returns at random, and the agency has become far more sophisticated about identifying which ones deserve scrutiny. Every return you file gets scored by the Discriminant Function System (DIF), a computerized scoring model that compares your return against statistical norms for your income bracket.Returns that deviate significantly from what the IRS expects for someone in your income range, occupation, and location get higher DIF scores automatically. The algorithm also cross-references your reported income against third-party documents including W-2s, 1099s, and K-1s filed by employers and financial institutions.A Government Accountability Office report confirmed that the IRS is increasingly using machine learning models to identify returns with the highest likelihood of containing errors. But a human IRS employee still reviews your return and makes the final decision about whether to move forward with a full examination.Audit rates vary significantly depending on your income levelOut of the 266 million returns the IRS processed, only 505,514 were audited in fiscal year 2024, according to the IRS Data Book. That works out to roughly 0.19% of all returns filed, or fewer than two out of every one thousand returns submitted to the agency.But that average hides enormous variation once you break the numbers down by income, and some taxpayers face dramatically higher audit rates. Taxpayers reporting total positive income of $10 million or more faced an 11% audit rate for tax year 2019, the most recent year fully measured.Related: IRS issues harsh warning about AI and taxesAudit rates by income bracket (IRS fiscal year 2024):Under $25,000: Approximately three to four audits per 1,000 returns filed, driven largely by Earned Income Tax Credit claims$25,000 to $49,999: Approximately two audits per 1,000 returns filed, one of the lowest audit rates across all income brackets$50,000 to $499,999: Approximately one audit per 1,000 returns filed, the lowest overall examination rate for individual taxpayers nationwide$500,000 to $999,999: Approximately six audits per 1,000 returns, a noticeable jump from the rates faced by middle-income filers$1 million to $5 million: Approximately 11 audits per 1,000 returns, reflecting the IRS enforcement priority on high-income earners directly$5 million to $10 million: A 3.1% audit rate, or 31 audits per 1,000 returns filed, according to the latest IRS data$10 million and above: An 11% examination rate, the highest audit coverage among all individual income categories tracked by the agencyThe IRS has committed to not raising audit rates above historical levels for taxpayers earning under $400,000 annually under current enforcement guidelines. However, Congressional budget proposals and IRS workforce reductions may further shift how the agency allocates its limited enforcement resources going forward.5 red flags that could draw the IRS directly to your returnThe IRS does not publish an official list of audit triggers, but tax professionals and IRS data consistently point to the same recurring patterns. You should understand each of these red flags because even one of them on your return can significantly increase your chances of being selected.Red flag #1: Unreported income or mismatched third-party documentsEvery W-2, 1099-NEC, 1099-K, and 1099-B filed by employers, brokers, and payment platforms gets matched against the income you report on your return. If the IRS system detects a discrepancy between what third parties reported and what you claimed, your return gets flagged automatically for review.Red flag #2: Deductions that are disproportionately large relative to incomeClaiming $30,000 in charitable deductions on $75,000 of income will almost certainly attract IRS attention because that ratio falls far outside statistical norms. The DIF scoring system compares your deductions against averages for taxpayers with similar incomes, and significant deviations raise your score immediately.Red flag #3; Repeated Schedule C losses from self-employment activityIf your business consistently generates losses that offset your W-2 income year after year, the IRS may question whether you operate a real business. The agency could reclassify your activity as a hobby, which eliminates your ability to deduct those losses against your other earned income entirely.Red flag #4: Excessive home office deductions without proper documentationDavid Perez, an IRS enrolled agent and CEO of Tax Maverick, told U.S. News that many taxpayers overestimate this deduction and claim far too much. Your home office must be used exclusively and regularly for business purposes, and the IRS has specific square footage and usage rules you must follow.Red flag #5: Unreported cryptocurrency and digital asset transactionsStarting with 2025 transactions, crypto brokers must report proceeds to the IRS on the new Form 1099-DA, dramatically increasing the agency’s visibility. If you sold, traded, or received digital assets as income and failed to report those transactions accurately, the IRS matching system will catch it.

Cryptocurrency transactions are now easier for the IRS to track, making accurate reporting more important than ever before for taxpayers.fizkes/Shutterstock

What happens when you receive an IRS audit letter?If the IRS selects your return for examination, you will find out through a physical letter delivered by the United States Postal Service to your address. You will never receive a phone call, email, or text message from the IRS about an audit, and anyone who contacts you that way is likely a scammer.You can verify any letter you receive by checking the IRS notice lookup page using the CP or LTR number printed on the upper right corner of the document you received.Most audits are handled entirely through the mailIn fiscal year 2024, 77.9% of all IRS audits were correspondence audits conducted entirely by mail, according to the IRS Data Book (Publication 55-B). These mail-based audits typically ask you to provide additional documentation supporting specific items on your return, such as deductions or income amounts.More Personal Finance:Why selling a home to your child for a dollar can backfireElon Musk says ‘universal high income’ is comingFTC, 21 states sue Uber over ‘shady’ subscription billingThe remaining 22.1% of audits were conducted in person, either at an IRS office, your tax professional’s office, or at your home or business. You have the right to request an in-person audit if the complexity of your situation makes a mail-based review impractical for your circumstances.How to prepare yourself if the IRS selects your returnThe IRS will tell you exactly what documents it needs to conduct your audit, so you will not be left guessing about what to gather together. Your audit letter will include a specific list of records the agency wants to review, and you should start assembling those documents immediately.Related: The IRS Says Tax Refunds are Up 10%Records you should have ready:Receipts for any deductions you claimed, with notes explaining what each expense was for and how it relates to your returnW-2s, 1099s, and K-1s from employers, brokers, and partnerships that document all income sources you reported on your filed returnBank statements and canceled checks that show the dates, amounts, and recipients of payments you deducted from your taxable incomeMileage logs, travel records, and business expense documentation organized by trip, date, and clearly stated business purpose for each itemLegal documents, loan agreements, and property records that support any claims related to interest deductions or real estate transactions reportedThe IRS recommends organizing your documents by year and transaction type and including a summary page listing everything you are submitting. Do not send original documents by mail under any circumstances, and always request delivery confirmation to prove the IRS received your package.Consider hiring a tax professional for representationYou have the legal right to represent yourself during an IRS audit, but a qualified tax professional can often navigate the process more efficiently. Enrolled agents, certified public accountants, and tax attorneys are all authorized to represent you before the IRS during an audit examination proceeding.Three realistic outcomes after the IRS completes your auditAfter the IRS finishes reviewing your documents, the agency will send you a letter with a report explaining the findings and any proposed changes. Your audit will end in one of three ways, and each outcome requires a different response from you depending on whether you agree with the results.No change to your return: The IRS found that everything you reported was accurate and properly supported by documentation, and your case is closed with no adjustments.You agree with the proposed changes: The IRS identified adjustments to your return, and you understand and accept them, so you follow the payment or refund instructions included.You disagree with the proposed changes: You can request a conference with an IRS manager or file a formal appeal through the IRS Alternative Dispute Resolution program within 30 days.Ignoring an audit letter does not make the process go away, and the IRS will simply complete the audit using whatever information it already has. That almost always results in changes that are less favorable to you, because the agency will not give you the benefit of the doubt without documentation.Steps you can take now to reduce your tax audit riskYou cannot eliminate audit risk entirely, but you can take specific practical steps that significantly reduce the likelihood that your return will be selected. The best defense against an IRS audit starts long before you file, and it begins with accurate record-keeping throughout the entire calendar year.Report every source of income accurately, including freelance payments, side hustles, investment gains, and any income from digital asset transactions reported.Keep all receipts, invoices, and bank statements that support your deductions, and organize them by category so they are ready if needed.Avoid using suspiciously round numbers for deductions, because claiming exactly $10,000 or $15,000 in expenses raises red flags in the DIF scoring system.File your return electronically with direct deposit, which reduces processing errors and provides faster confirmation that the IRS received your filing.Reconcile all third-party income documents against your return before filing, and make sure every W-2, 1099, and K-1 matches what you reported.Consult a qualified tax professional if your return involves self-employment income, rental properties, foreign accounts, or large itemized deduction claims seriously.The IRS generally has three years from your filing date to initiate an audit, but that window extends to six years if substantial underreporting is found. You should keep all records used to prepare your return for at least three years, and hold onto investment-related documents for up to seven full years.Related: How to boost your tax refund​