Here at Whittaker our clients almost never get audited. Although, a question we get from non-clients all the time is, “how do I reduce my risk of being audited?” Well, ProActive Tax Planning is one of the best ways to do that.

Tax season is a stressful time for many individuals and business owners. However, there is a powerful tool at your disposal that can significantly lower your risk of an audit: ProActive Tax Planning. In this blog post, we’ll explore how being ProActive in managing your taxes can act as a shield against audits, potentially saving you time, money, and a whole lot of stress.

If you want to see the recent 2020 audit rates based on income and business entity type download our PDF here: Tax Planning A Way to Lower Your Audit Risk

The Audit Anxiety

The audit process involves a thorough examination of your financial records and tax returns to ensure compliance with tax laws. The prospect of an audit can be daunting because it can lead to penalties, fines, and even criminal charges if tax evasion is suspected.

However, not every tax return is audited. The IRS selects returns for audit based on various factors, including red flags and random selection. Being ProActive in your tax planning can significantly reduce these red flags and your chances of being audited.

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  1. Accurate Reporting

One of the most common triggers for tax audits is errors or inconsistencies on tax returns. ProActive Tax Planning involves meticulous record-keeping and double-checking your returns to ensure they are accurate and complete. This reduces the likelihood of your return being flagged for discrepancies that could lead to an audit.

  1. Claiming Legitimate Deductions

Tax authorities scrutinize deductions closely, particularly those that may seem overly generous or outside the norm for your income level or industry. ProActive Tax Planning includes identifying and claiming all legitimate deductions to reduce your taxable income, but it also ensures that you have the necessary documentation to support these claims. This way, you can confidently defend your deductions if they are ever questioned.

  1. Compliance with Tax Laws

Staying current with tax laws and regulations is essential. ProActive Tax Planning involves keeping up-to-date with changes in tax codes and understanding how they affect your financial situation. Failing to comply with tax laws can increase your chances of an audit, so being proactive means avoiding risky tax strategies and shelters that may attract unwanted attention.

  1. Working with Professionals

Seeking professional tax advice is a crucial component of ProActive Tax Planning. Tax professionals are well-versed in tax laws and regulations and can provide guidance on how to optimize your tax situation while staying within the bounds of the law. They can also represent you in case of an audit, providing expert assistance in addressing any issues that may arise.

  1. Timely Filings and Payments

Meeting tax deadlines is another essential aspect of ProActive Tax Planning. Late filings and payments can trigger penalties and increase the likelihood of an audit. By planning ahead and staying organized, you can ensure that your taxes are submitted accurately and on time.


In the world of taxation, the saying goes that “an ounce of prevention is worth a pound of cure.” This adage rings true when it comes to tax audits. ProActive Tax Planning is your shield against audits, helping you reduce the risk of being targeted by tax authorities.  By accurately reporting your income, claiming legitimate deductions, staying compliant with tax laws, seeking professional advice, and meeting deadlines, you can safeguard your financial well-being and enjoy peace of mind during tax season. Remember, the best way to avoid an audit is to be prepared for one. This makes ProActive Tax Planning an essential step in your tax process. To learn more about our ProActive Tax planning Process click the link here: