The extreme complexities of the United States tax code make it no surprise that a large number of small businesses make honest mistakes on their tax returns which can end up costing them plenty. And, no matter how unwitting that mistake might have been, count on receiving no mercy from the IRS. There are several common mistakes which you can avoid, thus lessening your chances of being the target of an IRS audit of your small business.

Although the IRS does not require that you save and submit receipts for meals and entertainment which cost less than $75, keep every single receipt anyway. Not only should you keep the actual receipt, make a record documenting the date, where  you were when you incurred the expense, whether there were people with you, the business purpose of the receipt and the business relationship between you and those who were with you. While a credit card receipt may have your name, the date and address of the restaurant, go the extra mile and write out the purpose of the meal or entertainment. Make sure you have a secure place you keep all receipts and documentation, and whatever you do, don’t wait until it’s time to file your taxes to record that year-long documentation thinking you will remember the circumstances—you won’t.

Any office equipment such as computers or office furnishings are considered capital expenditures and must be depreciated rather than simply deducting the equipment on your tax return as an office supply. If the IRS decides you deliberately mischaracterized the equipment they may deny your deduction altogether. If you, like most small business owners, sometimes use your personal credit cards or cash when buying business items, make sure you keep close track of those costs, submitting them for reimbursement to your business.

Many small business owners get into trouble with their automobile deductions. Remember, you can either take the standard mileage deduction or you can deduct actual auto expenses but you can’t do both. You can go from one method to the other from year however this may skewer your automobile depreciation amount. If your vehicle is owned completely by your business, then you are allowed to deduct all auto expenses, however you ever use the vehicle for personal use, then this is considered taxable income to you—or the employee who uses the vehicle.

The IRS has recently reduced their number of audits on those who make less than $200,000 per year and have shifted their primary focus to those who operate small businesses. In fact, the IRS currently audits around 4% of small businesses, with a concentration on cash-based businesses such as those in the construction industry, bars, restaurants or mobile food vendors. If the business is a partnership or S-corporation, there is much less audit risk however you should consider all aspects of incorporating aside from potential IRS benefits.

The biggest trap which small business owners fall into is mixing personal and business use of assets and deductions. Remember—the IRS will contend that all assets and deductions are personal unless you have meticulous records proving otherwise. Should you find yourself in trouble with the IRS because of honest mistakes you’ve made with your business returns, don’t waste time—consult with a knowledgeable tax attorney as soon as possible.