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6 tax terrors and how to overcome them without therapy

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Afraid I'll get audited
Afraid I'll get audited | Oli Kellett/Getty Images

Afraid I'll get audited

Everyone dreads facing a tax examiner. But audit fears tend to be much greater than audit realities. The overall risk of audit remains small. In recent years, the IRS' audit rate has hovered at less than 1 percent for individuals earning less than $100,000. The agency is now going after wealthier taxpayers who tend to produce a larger return on the audit effort.

The remedy: Statistics don't matter if you're one of the relatively few audited. If that happens, make sure you can show an IRS examiner why you filed as you did.

Keep good records. If you can prove the tax break was valid, you'll be OK. People who work for themselves and file Schedule C do tend to get scrutinized a bit more, so your business record keeping needs to be precise.

Check out Bankrate's Self Employment Tax Calculator.

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