Clear Tax: An IRS Help Tool

What we do.A p r e d i c t i v e a n a l y s i s t o m a k e b e t t e r d e c i s i o n s .

• Clear Tax gives business owners and management a tool to predict and correct the likelihood of an IRS audit in the near future.

• High risk items are flagged and assigned risk levels and a dollar “Amount at Risk.” The analysis provides an explanation and corrective action.

• Our experienced tax professionals (former IRS Revenue Agents, CPAs, and business owners) analyze real time analytics and business processes to identify audit risks.

• Also included is a benchmark report comparing the target business’ tax return to competitors in the same industry, geographic region, and similar company size.

1.2 Million Tax Returns Were Audited by IRS in 2015Of those selected, IRS changed 91% of individual tax returns and 87% of business returns

In those audits, IRS increased taxes by $11.5 billion

Would you make a change today if you knew your business was at risk of being audited?

Tax returns filed by state

Top 5 states for returns filed in the U.S., taxes collected, and audits

State Percent Returns Filed

in US

Taxes Collected

Percent of US Audits

California 12.05% $405M 8.66%Texas 7.79% $279M 2.97%Florida 6.85% $269M 3.54%New York 6.60% $177M 3.01%Illinois 4.15% $158M 1.31%

The IRS Targets High Earners

>$10M

$5 - $10M

$1 - $5M

0 20 40 60 80 100 120

34.69

19.44

8.42

65.31

80.56

91.58

Percent of Individuals Selected for Audit by Income Bracket*

Selected for Audit Not Selected *According to 2015 IRS Data Book

Benefit to business owners.

• Identify real risks in financial reporting that may trigger a costly and time consuming IRS audit. These risks may point to deeper issues in the management of the business.

• Provide business owners and management an opportunity to make decisions today to modify business operations and correct errors in the financials and tax returns.

Three reasons to get a Clear Tax Report:1. Preserve company’s capital2. Minimize compliance cost3. Increase company’s valuation with credible records

Who Can Benefit From Clear Tax?• Business owners and management

looking to minimize risk• Start-up companies who need to

preserve their capital and valuation (by minimizing an IRS inquiry and potential assessment of additional taxes)

• Banks conducting research on potential loan recipients and credit partners.

• Business investors who rely on the target company’s financials to be an accurate depiction of that company’s true business operations.

Clear

Tax

Small Business Owners &Operators

Corporations and

Partnerships

Commercial Banks

Business Investors