Let me start by saying that there is no way to avoid being audited that's 100% effective. There is though some precautions you can take to reduce your chances. Every year, 2 million people received those ''invitations'' in the mail to be audited. They are picked by a computer. The computer will be programmed to pick out returns that are most likely to have errors on them, while some are completely random. The picked out returns will then be overlooked by an IRS team, who will decide if the person should be audited or not. Now this second step is crucial. Remeber this:

-Auditors will examine closely the type of deduction you are les likely to have accurate documentation on, such as losses due to flood, fire, vandalism, storms, accidents or things like that.
-If you have a large claim for child care, which is often paid in cash, make sure to document carefully.
-Charitable contribution are also carefully revised, so BE SURE to ask for a receipt if you made one.
-Be careful about entertainment and auto deductions.

So when the computer kicks out your return, that does not mean you will automatically audited. You might never even know your return was chosen! The key is prepare your return correctly. If it is obvious that there is no mistake, the IRS agent reviewing it will most likely overturn the computer's decision. Make sure to include all receipts necessaries with your return, especially if you have unusually large deductions on it.

Now if it happens that you cannot get out of it at that stage for some reason, and you get the call. You are being audited. Don't panic! The first advice I can give you, and probanly the best thing for you to do, it to let your accountant deal with the auditor. They are use to it, and will understand the financial jargon better than you (let's say that they won't be speechless with fear, like the rest of us). If there are things that are unclear, he can buy you some time by telling the auditor something like ''I will have to check with my client and get back to you''. Answer the auditor's questions with simplie short answers, ''yes'' or ''no''. Do not ''volunteer'' to give him more receipts or information than what is asked.

Audits are painful and scary, but if you files your return correctly, you should be out of it in no time. If you were picked, it is most likely becuase there was some errors, which will cost you, but at least you wont end up in jail. Unless you were delibirately frauding the govnerment, and even then a check can usually buy you forgiveness.