4 min read
“Friends Don’t Let Friends Overpay the Government!”
If you’re a business owner, you’ve probably had this thought:
“If I start using tax strategies… am I basically putting a target on my back?”
Totally fair question. And the honest answer is nuanced:
- Good tax strategy doesn’t make you “audit bait.”
- Sloppy tax strategy does.
- And the difference is almost always documentation + compliance.
At Make Taxes Fair, we’re not interested in cute loopholes or gray-area games.
We help business owners use legal, IRS-recognized strategies, and then back them up with the kind of systems that make an IRS agent say: “Yep, this checks out.”
The Big Myth: “If I claim deductions, the IRS will audit me.”
Here’s what actually happens in real life:
The IRS doesn’t audit you because you used a strategy.
The IRS audits when returns look inconsistent, incomplete, or unsupported.
And the outcome of the audit will be negative when you can’t prove what you claimed.
That’s why our framework includes a pillar specifically designed to protect you:
Getting Organized (a.k.a. audit-proofing your return).
The Make Taxes Fair Definition of “Safe Tax Strategy”
Safe tax strategy = strategy you can defend.
Defense doesn’t mean arguing.
It means showing clean records that prove:
- You followed the rules
- You have a legitimate business purpose
- Your paperwork matches your story
That’s why we push compliance hard.
Because during an audit, the IRS expects to see your records: minutes, resolutions, and documented proof you’re operating like an honest operation and playing by the rules.
And that’s the real truth:
The tax code is about 75,000 pages long.
About 50 of those pages are about paying taxes.
The rest is giving you legitimate ways to legally avoid paying taxes.
You can massively slash your tax bill by working with someone that knows and understands the legitimate ways to legally pay less.
What Actually Reduces Audit Risk: Systems
Here are some very simple examples of how SYSTEMS make the difference between legitimate and “shady” tax strategy.
1) Corporate compliance is “insurance against chaos.”
When you form a corporation/LLC, there are legal and tax requirements annual reports, internal documents, meeting minutes, resolutions, and proper registrations.
Mess this up, and you can lose tax benefits (including S-corp advantages).
Think of it like this:
- Strategy is the “engine”
- Compliance is the “seatbelt”
- Documentation is the “airbag”
You want all three.
We help our clients implement corporate compliance to protect the strategies that hinge on the LEGAL Structure pillar of the CLEAR EDGE Framework.
2) Accountable Plan (audit-safe when documented)
An Accountable Plan is an IRS-approved way to reimburse employees (including owner-employees) for business expenses tax-free, but it’s only “safe” when you run it like a system.
Our playbook is crystal clear on what protects you:
- Have a written plan (strengthens audit defense)
- Reimburse within 60 days
- Collect detailed expense reports + receipts
- Don’t round numbers or overpay reimbursements
That’s not aggressive. That’s organized.
We help our clients button down their Accountable Plan as part of the DEDUCTION Optimization of the CLEAR EDGE Framework.
3) S-Corp Payroll Strategy (safe when you prove “reasonable compensation”)
S-corps can reduce payroll taxes but the danger zone is pretending you don’t work.
The protection is straightforward:
- Make sure corporate minutes name your salary
- Keep documents that prove your salary is reasonable
Translation: we don’t “wing it.” We build the file that supports the position.
We help our clients remove the guesswork of what “reasonable compensation” is by using a Compensation Study. We include this as part of the LEGAL Structure pillar of the CLEAR EDGE Framework.
4) Board of Directors + Meetings (safe when it’s real and documented)
A board strategy can create legitimate deductions (meetings, travel, etc.) but again, the safety is in the system:
- Name board members in internal minutes
- Hold meetings on a schedule
- Use signed minutes + agenda
- Document expenses properly
- Don’t disguise vacations as business trips
We help our clients implement the Board of Directors strategy as part of the DEDUCTION Optimization pillar of the CLEAR EDGE Framework.
5) Tax Credits like Workers Opportunity Tax Credit or WOTC ... Safe when you have proof!
Can credits trigger scrutiny? Sometimes. But scrutiny isn’t scary when the paperwork is tight.
For WOTC specifically, the documentation that protects you is built in:
- Proper screening and onboarding processes
- State workforce agency certifications serve as proof of eligibility and compliance
The WOTC is one of dozens of tax credits that business owners fail to capture. The Make Taxes Fair CLEAR EDGE Framework avoids this massive miss because CREDITS is literally the first pillar of the framework.
The IRS Only Has One Real Question: “Can you prove it?”
It doesn’t matter what business niche you are in.
Tax courts repeatedly deny deductions when taxpayers show up without proof of time, work, or records, and IRS examiners are instructed to request and examine documentation (like time logs) to verify claims.
The painfully simple solution is this:
A deduction you can’t document is a deduction you don’t really have.
“What if I get audited?”
Any tax professional who says “You won’t get audited if you work with me” must have a crystal ball that we don’t have. There is no guarantee that someone will or won’t get audited.
But there’s real power in understanding exactly what an audit is.
First and foremost, audits aren’t a moral judgment. They’re a process of verification.
The US Tax system is an “on my honor” system. That means that we as taxpayers file the tax returns and sign off on them that they are accurate and true.
The IRS is within their rights to verify the integrity of the tax returns and that is what the audit process is.
That leads us to the second point: Our goal isn’t just “save taxes.” It’s save taxes and sleep at night.
That’s why we design strategies around:
- Written policies (minutes, plans, resolutions)
- Consistent recordkeeping
- Clean separation between personal and business
- Documentation that matches the return
When everything is supported, an audit becomes a minor bump in the road and not a full blown fire drill.
What We Don’t Do at Make Taxes Fair
We don’t:
- Invent deductions
- Hide personal expenses in the business
- Recommend “vacations disguised as business trips” (huge red flag)
- Tell S-corp owners to pay themselves unreasonably low wages without proof
- Run reimbursements without receipts and reporting
Because that stuff isn’t strategy.
That’s gambling.
A Simple “Audit-Safe Strategy” Approach
So to answer the question, “Will this increase my audit risk?” we say:
“Our strategies are designed to be audit-defensible. We focus on three things:”
- Legit Strategy
IRS-recognized methods (not gimmicks) - Clean Compliance
Minutes, resolutions, and entity requirements handled correctly - Rock-Solid Documentation
Receipts, logs, reports, and written plans that match the tax return
We do not operate in a state of fear of the IRS.
We operate from a place of CONFIDENCE that if they ever ask, we can calmly provide proof of legitimacy of our approach.
Strategy Doesn’t Create Risk, Sloppiness Does
The IRS thrives on confusion.
Our job is to replace confusion with systems.
When you implement a tax strategy the Make Taxes Fair way, legal, ethical, documented, and organized, you’re not becoming more vulnerable.
You’re becoming more prepared.
And prepared business owners don’t overpay the government.
Friends don’t let friends overpay the government.
