The clock is ticking down to April 15, but entrepreneurs may have bigger tax worries. The IRS has said it is refocusing its audit efforts on sole proprietors and other small businesses.
If there’s good news, it’s that the risk of an audit is still low. In 2013, S corporations and partnerships both had audit rates of 0.42 percent, down from 0.5 percent in 2012. Corporations with assets of less than $10 million had an audit rate of 0.95 percent, down from 1.1 percent a year earlier, while individuals filing a Schedule C or E saw audit rates ranging from 1.2 percent to 3.6 percent.
Watch my video below for some of the audit red flags that are tough to avoid, and visit CNBC.com for the full article on audit-tackling strategies.