Clear Tax specializes in providing business owners and management a tool to predict and correct the likelihood of an IRS audit in the future. Many business owners as well as potential buyers of businesses are able to use this as an indicator of certain red flags in the financial management of a particular business.

2. What we do.
A predictive analysis to make better decisions.
• 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.

3. 1.2 Million Tax Returns Were
Audited by IRS in 2015
Of 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?

4. 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%

5. The IRS Targets High Earners
34.69
19.44
8.42
65.31
80.56
91.58
>$10M
$5 - $10M
$1 - $5M
0 20 40 60 80 100 120
Percent of Individuals Selected for Audit by Income Bracket*
Selected for Audit Not Selected *According to 2015 IRS Data Book

6. 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 capital
2. Minimize compliance cost
3. Increase company’s valuation with credible records

7. 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