If you're a freelancer, sole proprietor, or small business owner, filing Schedule C with your tax return is part of your routine. But it’s important to know that some entries on that form can raise questions with the IRS. While most small businesses won’t face an audit, certain red flags can increase your chances of receiving IRS correspondence, a notice, or a closer look at your return.

Freelancing is exciting — you set your own schedule, choose your clients, and work from anywhere. But with that freedom comes a new set of responsibilities, especially when it comes to taxes. Many freelancers wait until April to think about tax season, but staying organized all year long will save you stress and money.