Here's some good news if you hate being questioned by government authorities: Audit rates have declined drastically. Between 1999 and 2000, the latest year for which data are available, the number of individual returns examined fell 44 percent to roughly 618,000 from 1.1 million. There have also been sharp declines in collection enforcement as well as IRS lawsuits against recalcitrant taxpayers and those alleged to have committed criminal tax violations.

The best way to minimize your chances of being questioned by the IRS is to file on time, attach all necessary schedules, fill out every form completely, and double-check your math before submitting your return, says Frederick W. Daily, author of Surviving an IRS Tax Audit.

Of course, you can't completely eliminate your chances. So to ensure that you're well prepared in the event that you are audited, maintain good records and receipt files. These include any forms and statements that show income or support deductions (W-2s, 1099s, canceled checks, receipts, etc.) as well as copies of your return.

Under the statute of limitations, the IRS has three years in which to audit a return, so keep your tax records for at least that long. The same goes if you filed a return but didn't pay the full balance owed. But many experts recommend keeping your records for up to six years since that's the time limit the IRS has to come after you if you underreport your gross income by more than 25 percent; and your state may have longer time limits for audits.

(It's worth noting, too, that if you don't file a return and you owe taxes, the IRS can come after you at any time to claim what's due.)

For more information on audits and how you can avoid them, click here.

There are some records you should keep indefinitely for tax purposes. These include: