Retirement tax questions

I read that the IRS matches 1099s against submitted 1040 forms. if the taxable income on my 1099 doesn't match my 1040 will that trigger an audit? The retirement board told me we don't get the tax benefit we did when I was employed and that I would need to add the insurance premiums to itemized deductions. Since we are only eligible for the standard deduction, I would lose the tax benefit for the insurance premiums. Is this correct? Is there any clear guidance for this in IRS publications?