"The IRS primarily targets small businesses, especially sole proprietorships, and cash industries like pizza parlors and coin-operated Laundromats with opportunities to hide income and skim profits," said Certified Tax Coaches' Molina.
If you own a business, report every single bit of income you've received. If you're still worried about being audited, you may even want to reorganize your business as a corporation or partnership (which means you're not required to file a Schedule C) instead of a sole proprietorship, said Molina.
And if you're flagged for an audit, the IRS will be skeptical of any business that looks like it's actually a hobby, especially if you are deducting a loss on your return.
From pet pigs to Playboy magazines, here are some of the most outlandish deductions taxpayers have tried to slip past the IRS.
