As a small business owner, it is your responsibility to report any and all business income to the government accurately. They want full information. In most cases, accurately reporting your income and tax situation will provide you with an in the clear type of situation. Yet, you may want to know what they are specifically looking for.

If the IRS does investigate you, they will want answers to some specific questions.

Did you report all of your business receipts and income?
Did you report all cash transactions that have taken place, especially large ones?
Does the lifestyle that you lead fall into line with the income that you bring in?
Are your deductions for business only or do some fall under personal expenses?
Are you classifying your workers as employees and contractors correctly?
What vehicle, travel and entertainment expenses have you claimed that are not business related?
Do you have the correct payroll tax deposits made?

Consider where your business falls into line here.