To decrease the chances of an IRS audit you can: research the IRS standards for expense percentages for businesses similar to yours use a professional to set up your bookkeeping system, prepare your taxes or to maintain your books research information online at www.irs.gov. all of the above the first and second choices The IRS decides who to audit by: comparing national income and deductions averages of similar businesses to your income and deductions assessing DIF points where your income and deductions vary from the national norms for similar businesses applying a rule that when you receive 3 DIF points, an audit is automatically recommended. all of the above the first and second choices Which of the following is true of an independent contractor hired for a massage therapy business: the contractor provides massages at your place of business, using your equipment on a regular schedule of 30 hours a week employers must withhold Social Security, Medicare and income taxes from the money paid to an independent contractor employers must file form 1099-MISC for each independent contractor all of the above the first and second choices Your tax home is: the state in which you reside always your home your