Clear Tax Introduces New IRS Audit Prediction Tool

Clear Tax, a San Diego based company of tax professionals, is introducing a tool to assist business owners the ability to identify risks in financial documents that may trigger an IRS audit.

San Diego, CA, August 29, 2016: Clear Tax, a San Diego based company of tax professionals, is introducing a tool for business owners to identify whether they are at risk for an IRS audit.

The unique process developed by Clear Tax is a powerful tool that provides a risk roadmap for business owners to follow. High risk items are flagged on their tax return and corrective action is provided. Business owners and managers can use Clear Tax’s tool to identify hidden errors and business practices that may appear suspicious to IRS.

The tool was designed for all types of businesses to quickly assess their audit risk and make immediate and strategic decisions to minimize the risk of an audit. Even if a business is already involved in an IRS audit, Clear Taxes’ analytic report provides strategic information for business owners to make better decisions during an audit.

According to IRS statistics published in 2015, 1.2 million tax returns were audited by IRS in 2014. Of the audited returns, IRS changed 87% of business tax returns. Only 13% of audits resulted in a “no change.” Thus, the odds are stacked against the business owner before the start of an audit.

There is a wide range of potential tax issues that can trigger an IRS audit. Some common ones include unreported business income, unsubstantiated business expenses, or misclassifying a worker as independent contractor versus an employee. When IRS examines a tax return, they apply a DIFF score based on IRS’ own analytics, which examines income reported by a third parties, historical trends in that company’s financials, and other factors in the company’s industry. These factors determine whether IRS will audit a return.

Clear Tax founder and Tax Attorney John Milikowsky and his team have more than 60 years of combined experience operating companies and representing businesses before the IRS. The team includes former CPA’s, business owners, and IRS revenue agents. The need for an analytic tool was developed from their own financial analytics and their knowledge and expertise in advising business owners of hidden risks. Clear Tax’s report is also used by potential buyers of a business to find weaknesses and consistencies in the financials and mismanagement. The buyer now has a true understanding of the company’s financial health from the IRS’ perspective, which gives the buyer more information to know exactly what they are getting for their money. The buyer also understands risk of an IRS inquiry and additional taxes that may be owed.

Clear Tax also offer defense strategies when dealing with the IRS. For more information or to contact Clear Tax call 858-622-6311, visit or contact John Milikowsky at:

Contact Info:
Name: John Milikowsky
Phone: 858-622-6311
Organization: Clear Tax

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Release ID: 130637