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Clear Tax: An IRS Help Tool

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Page 1: Clear Tax: An IRS Help Tool
Page 2: 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.

Page 3: Clear Tax: An IRS Help Tool

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?

Page 4: Clear Tax: An IRS Help Tool

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%

Page 5: Clear Tax: An IRS Help Tool

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

Page 6: Clear Tax: An IRS Help Tool

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

Page 7: Clear Tax: An IRS Help Tool

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

Page 8: Clear Tax: An IRS Help Tool