Follow these suggestions to avoid an audit from the IRS: Don't make mistakes on your return. Follow instructions to the letter. Explain all unusual items. File on time. Electing S corporation status can also help. In order to make sure that the IRS won't take a large sum in the event of a business transfer as a result of death, work out a transfer plan that incorporates all elements of the transfer with one professional accountant to streamline the process at a minimum loss.