You probably aren't too concerned about being selected for an audit. Well, if you're a freelancer, avoiding an audit should always be on your mind as you file your taxes. Why? Because, no matter how straight you play it, freelancers get audited much more than salaried employees do. No - United States IRS doesn't have it in for independents, but numerous deductions that we file set us apart from other taxpayers.

So what can you do to keep IRS from noticing your return? Below find hints and suggestions to keep IRS away! These tips are particularly relevant to those in US, though other tax systems may be similar -- check with your accountant for details. And please note that information provided here should by no means be used as a guide to filing your taxes! These are merely suggested tips and hints. Be sure to seek professional advice in taxation, as in all business matters.

Six Steps to an Audit-Free Tax Return

1. Be Careful With Deductions

The IRS's favorite target is home office deduction. In order to qualify for a home office deduction, your office needs to be your "principal place of business" and used "regularly and exclusively" for business. In plain language, this means that your home office needs to be place where you spend most of your time and make majority of your income.

You'll also need to keep your personal life out of your home office. For example: a trick that I heard IRS sometimes uses is to ask taxpayer being audited "Do you use your computer for 50% personal and 50% business or 5% personal and 95% business?" If you answer 95% business, you have flunked test -- answer needs to be 100% business. This example demonstrates strict enforcement of guidelines for home office deduction. We'll talk about this more in Home Office Deductions for Freelancers.

Believe it or not, there are certain projects that you probably shouldn't accept. Turning down work is probably hardest decision you will need to make when running your business, but sometimes turning down a gig is necessary. In this article I will explain to you details that you need to consider when you aren't sure which route to take. Consider following:

1. Will I Learn From This Gig? - As a freelancer, especially one in a technical field, you are expected always to be on top of new advances in your field. Therefore, taking a gig that will help you learn about something is probably worth taking on. However, it is important to make sure that you can do job well even though it is new waters for you.

2. Is The Money Good? - If gig pays a lot of money, taking money without any other benefits is probably a good idea. I am sure that you have an hourly rate, use this rate as a gauge to decide whether to take a job or not.

3. Do You Trust The Client? - If a potential client gives you heebie-jeebies then your instincts are probably telling you something. Do potential client's references check out? If you mistrust a potential client, but pay looks good, perform a background check. An untrustworthy client could cheat you out of a lot of money, and isn't worth collection efforts.