When it comes to audit risk, there are two factors to consider:
- There’s the risk of being audited
- If you are audited, there’s the risk that adjustments will be made resulting in increased taxes, plus penalties and interest
Proper tax planning and tax return preparation can provide you with tremendous control over this factor.
When done right, identifying legal tax saving opportunities actually helps reduce your audit risk.
The key to tax planning is being proactive.
If you wait until tax season to address your tax plan, most likely, you are too late.
Contact our team today to build a comprehensive tax plan.
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The fear of a tax audit can make people do funny things.
I’ve seen people give up thousands in legal tax savings to hopefully avoid the possibility of an audit.
Many times at the advice of their CPA!
I go over this in the video below.
I regularly have clients tell me their prior tax adviser told them not to take a particular deduction because the deduction wasn’t worth the audit risk.
Then there’s the other side who take deductions they are unsure of and hope they don’t get audited.
Working with an CPA on tax planning will ensure that you legally minimize you taxes as much as possible while protecting against and audit.
Tax planning and tax preparation are two separate activities despite what many business owners think.
Building a dedicated tax plan is foundational to any serious wealth strategy whether you are an investor or business owner.
Contact our team today to build a comprehensive tax plan.
If you are not proactive and wait until after tax season you will be too late.
Do not send Uncle Sam a tip this year when you file your taxes!
Schedule a one-on-one consultation at the link below: