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Don't lose sleep being worried that you will be audited by the IRS. Overall, the chances are low of being audited, but if you are in a high income bracket or you own your own business, those chances increase.

There are ways to keep from having to go through this stressful process. Tax professionals call them "red flags." There are time-tested ways of avoiding being audited by the IRS

Here are recommendations to help you avoid being audited by the IRS:

- File a complete and accurate tax return. Double check your calculations and be sure to use the right form.

- Unreported Taxable Income? Don't forget such areas as alimony.
- Family trusts- Be cautious of using these unless you follow all the rules.

- Taking deductions? Back them up with documentation.

- Are you Self -employed or do you receive payment in cash? Your chances have increased.

- Claiming Car mileage for business purposes? Have specific records to back up each trip with odometer readings, at the start and finish of your trip, and destination/purpose.

- Filing electronically is to your advantage.

- Home office tax deductions are an area of scrutiny. Document and be reasonable.

- Dividends, interest, securities, etc.? You can bet that banks and other financial institutions report these and yours can be matched to theirs electronically.

- Business expenses high when compared to business income? Tread carefully here.

- Substantiate your claims to medical expenses.

- Claiming large charitable contributions for your income level? You need to be a record keeper with original receipts.

- High risk, high income taxpayers get the attention of the IRS

- Prior audit increases your chances of being audited. Document carefully. This does not just refer to business expenses.

- Two more factors that affect your chances of being audited:

1. The national Discriminate Information Function (DIF) system average. The DIF looks at which tax returns may be the best for the IRS to pursue in being able to collect penalties, more taxes, and interest.

2. Some IRS audits are simply at random

Knowing these caution areas of IRS audits can will help you understand who can be audited. You owe it to yourself to get a good night's sleep.

Learn more about this author, E.M.Robinson.
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