Running a business is hard enough without the constant worry of an audit.
Chris, founder of Make Taxes Fair, explains that the tax system is built to overwhelm. The IRS’s “taxpayer roadmap” is intentionally complex, designed to confuse business owners with letters, forms, and bureaucratic pressure.
“Most CPAs aren’t strategists—they’re ‘happy historians,’ focused on last year’s numbers.” – Chris
✅ Real protection means thinking ahead—not just reacting in April.
Chris developed a proactive system called the Clear Edge Framework, which focuses on:
Regular compliance checks
Strategic documentation
Year-round planning (especially in election years or major tax policy shifts)
The goal? Keep your business audit-proof—before the IRS comes knocking.
Even with digital tools, errors like an incorrect Schedule M2 or basis misreporting flag audits.
✅ Always verify your preparer’s work. Don’t assume “they’ve got it.”
Out-of-scope expenses or high deductions (e.g. travel) stand out—especially when misclassified.
Tip: Travel tied to production? Allocate it under cost of goods sold, not general expenses.
If your income suddenly rises—or crosses IRS thresholds—you become a priority audit candidate.
→ Related: Build a clean, fast operational structure to support sustainable growth.
Unless you’ve got a work-exclusive rig (like a welding truck), this claim usually gets flagged.
Omissions (intentional or not) are a huge red flag. Ensure every income stream is reported—even those you assume “don’t matter.”
Multi-year losses are suspicious. The IRS assumes most businesses aim to make money—not dodge taxes forever.
If you’re grossing big dollars and still filing as a sole proprietor, the IRS takes notice.
Chris recommends incorporating early to reduce exposure.
This one is infamous. The IRS wants exclusivity. That office cannot also be a guest room or gym.
If your write-offs seem too luxurious—especially relative to income—be ready to show your receipts.
→ Related: Streamline and document processes visually
Chris emphasizes:
Document everything
Classify accurately
Follow the spirit and letter of tax law
Build a system, not just year-end paperwork
Audit-proofing isn’t about fear—it’s about control and confidence.
✅ Stay proactive
✅ Work with strategic tax pros
✅ Own your financial story—before someone else rewrites it for you
Top audit triggers include: high deductions, unreported income, vehicle misuse, Schedule C filers with high revenue, and home office errors.
Only if it’s a work-exclusive vehicle. Otherwise, it’s one of the most common audit flags.
Make sure deductions match your industry norms, are properly classified, and include documentation (e.g., receipts, logs, travel justification).
Sole proprietors with high revenue are seen as less compliant than incorporated businesses. Consider an S-Corp or LLC for added protection.
It’s Chris’s proactive tax planning system that ensures businesses reduce audit risk year-round—not just at tax time.