IRS Audit red flags

According to CNNMoney.com

• No profit.
• Very low revenues.
• Sloppy handwritten business return.
• Return has blank sections.
• Take unlikely deduction (plumbing supply owner claiming too many business trips).
• Outsized and excessive deductions.
• Too much fun, such as excessive travel, car, entertainment, and cell phone expenses.
• As part of its small-business crackdown, the IRS is targeting sole proprietors. Schedule C filers with more than $100,000 in annual revenues were audited at a rate of 3.9% in 2006, up from 1.5% in 2000.
• Nice round numbers.