If you want to become a millionaire, you need to understand a bit about taxes. Last year the IRS audited over 1 million people, which is up from a year before (Yahoo Finance). Whether you’re doing your taxes now or waiting until April get all your 401k’s, IRA’s and other tax deductibles done first. And just so you don’t get caught with your pants down here are some tips I found on Yahoo Finance to help you avoid an audit.

1. Income owners over $100k are more likely to be audited. If you’re in the higher tax bracket it’s wise to make sure that you’ve got everything documented. Keep your receipts, bank statements, investment statements in a file cabinet or folder box. Just to be safe it’s wise to spend the extra money to get your taxes done by a professional, especially if you have assets like multiple properties or investments with high capital gains.
2. Donations for household items and clothes exceeding $500 require documentation. The IRS is tightening up its hold on tax gaps especially in the area of donations, a tax deduction widely believed to be abused. Before making donations to the Goodwill or Salvation Army make an itemize list of the things you are donating and the fair market price for the items. Request the proof of donation documentation after submitting your donations!
3. The AMT (Alternative Minimum Tax) may apply to you. If you are in the $100K+ tax bracket then you could easily be required to pay this tax, especially if you are in a taxing state. If you have a lot of deductions and high income this may trigger an IRS red flag.
   

   The AMT aims to collect taxes that are lost when filers use so many deductions they pay no taxes at all. This is because when the tax was invented in 1969 to prevent wealthy filers from avoiding taxes through extensive deductions, it has never been adjusted for inflation, and so it captures more filers lower down on the scale. And it continues today.

4. Having too many tax credits (specifically for lower income earners). If you aren’t highly familiar with the tax system, it’s easy to get confused about which tax credits apply to you. Taking the wrong tax credit is a common mistake among lower income earners. If you aren’t sure which tax credits apply to you, you can contact the IRS or use one of their free walk in centers for assistance.
5. Careless errors like incorrect SSN#, typos, or math errors.
   Things as simple as a sloppy return can derail an otherwise routine tax return. Matters as small as incorrect Social Security numbers, math errors or simple misspellings can bring a tax return to the attention of the IRS. Spend the extra time and care necessary to make sure you submit a clean tax return.

Overall, the best thing you can do to avoid tax audits is to only take credits and deductions that you are eligible for and that make economic sense.

For more tax information related to this article visit Yahoo Finance.