Tax Compliance Risk Assessment Tool

Evaluate your potential tax compliance risks and get personalized recommendations to improve tax reporting accuracy.

Your Tax Compliance Risk Assessment

Low Risk Moderate Risk High Risk

Moderate Risk

Based on the information provided, your tax compliance risk level is moderate. There are some areas where improvements could be made to reduce your risk of compliance issues.

Key Risk Areas Identified

Recommendations to Improve Compliance

Documentation Checklist

Document Type	Required For	Your Status	Recommendation

Helpful Resources

IRS Small Business and Self-Employed Tax Center

Resources for small businesses, self-employed individuals, and independent contractors.

www.irs.gov/businesses/small-businesses-self-employed

IRS Record Keeping Guidelines

Information on what records to keep and how long to keep them.

www.irs.gov/businesses/small-businesses-self-employed/recordkeeping

IRS Audit Information

Information about the audit process and how to prepare.

www.irs.gov/businesses/small-businesses-self-employed/irs-audits

Recommended Next Steps

Review your identified risk areas and take action on high-priority items.
Implement the recommended documentation improvements.
Consider consulting with a tax professional to address complex compliance issues.
Develop a plan for ongoing compliance monitoring and improvement.
Set calendar reminders for important tax deadlines.

Disclaimer: This tool provides a general assessment for educational purposes only and does not constitute tax or legal advice. Tax laws and regulations are complex and subject to change. The assessment is based solely on the information you provided and may not reflect all aspects of your tax situation. Please consult with a qualified tax professional for specific advice regarding your unique circumstances.

Ensuring accurate tax reporting and maintaining strong compliance is vital for individuals and businesses to avoid audits, penalties, and unnecessary stress. Our Tax Compliance Risk Assessment Tool is designed to help you evaluate your potential tax compliance risk factors and receive personalized recommendations to improve your reporting accuracy. This comprehensive and intuitive tool guides you through various critical areas of your tax situation.

You’ll begin by providing essential “Filing Information,” including your taxpayer type, filing status, and annual income. The tool then delves into “Income Sources & Deductions,” allowing you to select all applicable income sources such as W-2/Salary, 1099 Contract Work, Business Income, Investment Income, Rental Property, Cryptocurrency, and Foreign Income. It also prompts you to indicate if you itemize deductions and whether you claim business deductions. This detailed input helps identify potential areas of complexity or higher scrutiny.

Next, the “Documentation & Record Keeping” section asks you to confirm practices like keeping receipts for all business expenses, separating business and personal bank accounts, working with a tax professional, maintaining mileage logs for business travel, using accounting software, and retaining tax records for at least 7 years. Strong record-keeping is a cornerstone of good tax compliance, and this section helps you assess your preparedness.

The “Special Situations” section covers unique circumstances that might impact your risk profile, such as working or income in multiple states, operating a cash-intensive business, claiming vehicle deductions for business, having activities that could be considered a hobby, or having large charitable donations. Finally, the “Compliance History” section allows you to reflect on your filing history (filing on time), payment history (payments in full), and audit history (never been audited).

By analyzing your responses across all these categories, the tool provides a comprehensive risk assessment. This is an invaluable resource for individuals and businesses seeking to proactively manage their tax affairs, identify potential red flags, and implement best practices to reduce their audit risk and ensure accurate compliance. Our aim is to demystify tax compliance, making it accessible and manageable for all taxpayers, ultimately providing peace of mind and promoting robust financial integrity.