IRS AUDITS. Which of the following individuals are most likely to be audited? a. Connie has a $20,000 net loss from her unincorporated business (a cattle ranch). She also received a $200,000 salary as an executive of a corporation.

b. Craig has adjusted gross income of $20,000 from wages and uses the standard deduction.

c. Dale fails to report $120 of dividends from a stock investment. His taxable income is $40,000 and he has no other unusually large itemized deductions or business expenses. A form 1099 is reported to the IRS.