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While you might not want to think about it, small businesses like freelance writers have a higher chance of getting audited by the IRS than some other larger companies. Not only are you lacking many of the tools larger businesses might have, but you are also more likely to be less informed about how to properly fill out your taxes. Though you might not be able to avoid an audit forever, there are ways to minimize your chances of having to explain your business to the IRS.

Hiring a Professional to Do Your Taxes

One of the best ways to reduce your chances of getting audited is to hire someone else to do the work for you. With a bookkeeper or CPA, you can not only use their skills and expertise, but a CPA can even step in and go to your audits for you, should they occur. Professionals need to keep up to date on the latest tax news, so you won't have to. They will also know what auditors are looking for, so they can avoid these 'traps' and make sure your taxes are as accurately done as possible. You can find a number of tax preparation professionals in your local area or you can use professional software to help you manage your tax forms. Some of the software even has auditing assistance should your taxes need to be audited.

Double Check Your Work

The most common reason why taxes get audited is bad math. If you're doing your taxes on your own, on a piece of paper, make sure you are checking and then rechecking your math before you sign and seal that envelope. Whenever possible, have someone else check your math as well to ensure you are adding things up correctly. You might also want to talk yourself through your tax form, telling yourself what you did as you go along. This will help you to make sure you have done the work correctly and completely, which can also reduce your chances of audits.

If You're Unsure, Ask, or Just Don't Do It

Many audits are also triggered by deductions that aren't legitimate. You need to be able to show to the IRS that each of your deductions is legit and that you are able to back up your reasoning with receipts. If you're not sure if an item can be deducted, talk to a tax professional or check the IRS website. This will help you to make a decision as to whether your deduction is okay for your tax needs. And if you can't find the information you need, it's generally best to leave that deduction off. After all, if you find it is legit, you can always file an amended tax form at a later time to include it. The IRS has seven years in which to look back over your past taxes to see if you've done them correctly. If you're not making a lot of money, chances are good you'll stay out of the IRS office. But if you are successful in your writing business (and many people are), you need to make sure you're following the IRS rules – or that you're ready to pay a fine or go to jail.