How to Avoid a Tax Audit

While there's no guaranteed way to avoid being audited by the IRS, since a certain number of people are chosen every year for random audits, you can certainly avoid waving a red flag by maintaining your records.

Even if you are chosen for an audit, as long as you are honest, your records are in order and you seek help when you need it, you can handle being audited. But there is no reason to invite an audit through careless recordkeeping or "creative" accounting. There are some businesses and deductions that are considered red flags to the IRS. It is best to protect yourself with a few good practices for preparing your return.