The Dirty Dozen, 12 Things That Will Get You Audited By The IRS.

Most people think the IRS is like big brother and watches everything that comes in their way. The truth is only about 1% actually get audited. That doesn't mean you should go crazy and write off everything, but if you are filling out a schedule C, there are things the government looks for that they consider a red flag.

These twelve things will get you audited fast. It's best to avoid being audited because if they catch you at something, there may be some hefty penalties according to Yahoo! Finance here are a few of the reasons the IRS would find you.

1. Making too much money-people who make more get audited more.

2. Failing to report all taxable income-the government gets copies of everything that you make. If you fail to report some of those, you will be audited. So don't lose anything.

3. Taking large charitable deductions-if the IRS knows you collected any money for charity you better have all your reciepts.

4. Claiming the home office deduction-people tend to overextend for report too much space or use the room for other things than just office space.

5. Claiming rental losses- the IRS is scrutinizing rental real estate losses, especially those written off by taxpayers claiming to be real estate pros.

6. Deducting business meals, travel and entertainment- this is where most schedule C deductions happen. the IRS uses a fine tooth comb.

7. Claiming 100% business use of a vehicle-Unless the vehicle was purchases for the business and you have a large business just claim what you can handle.

8. Writing off a loss for a hobby activity-make sure you have this as a business. You can only claim losses for so long before it's a hobby that loses money.

9. Running a cash business-The IRS has a guide for agents to use when auditing cash-intensive businesses, telling how to interview owners and noting various indicators of unreported income.

10. Failing to report a foreign bank account-Make sure that if you have any such accounts, you properly report them when you file your return.

11. Engaging in currency transactions-The IRS gets many reports of cash transactions in excess of $10,000 involving banks, casinos, car dealers and other businesses, plus suspicious-activity reports from banks and disclosures of foreign accounts. A report by Treasury inspectors concluded that these currency transaction reports are a valuable source of audit leads for sniffing out unreported income.

12. Taking higher-than-average deductions-don't be afraid to claim what you are due, but don't go crazy, the government will wonder what up when you take large deductions.