Fear of audit? Keep good records.

The US Tax Code allows many deductions to reduce taxable income. Some taxpayers won't take a deduction simply out of fear that they will be audited. Keeping good records and documentation goes a long way in reducing the anxiety of the possibility of being audited.

If I kept bad records, I, too, would always be worried about being audited. Generally, if the IRS questions one of your deductions - no documentation, no deduction. Setting up a good tax recordkeeping system can not only save you tax dollars, it can also reduce a lot of unnecessary anxiety.