Are You Aware of Potential Tax Liabilities or Audits You May Be Facing?

Financial Horizons: Insights for Building Wealth and Securing Your Legacy 

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Most taxpayers think of April 15th as the only date that matters. But the truth is, your tax obligations don’t stop when you file. Failing to understand potential tax liabilities or the risk of an IRS audit can lead to costly surprises, stress, and financial setbacks.

Being proactive is the key. Let’s break this down.

What Are Tax Liabilities?

Simply put, a tax liability is the total amount of tax you owe to federal, state, or local authorities. It can arise from:

• Underpaid taxes throughout the year.
• Incorrect withholdings on your paycheck.
• Missed estimated payments for business owners or freelancers.
• Unexpected income (like investments, real estate, or side hustles).

👉 Why it matters: If you’re not tracking your obligations, penalties and interest can add up quickly.

What Triggers an IRS Audit?

Audits aren’t random—while some are selected by chance, most are triggered by red flags, including:

• Significant income changes year-over-year.
• High deductions compared to reported income.
• Excessive business expenses or losses.
• Unreported income from side businesses, rentals, or investments.
• Math errors or inconsistencies.

👉 Why it matters: Even if you’ve done nothing wrong, audits can be time-consuming and stressful without preparation.

How to Protect Yourself

1. Stay Organized
   Keep accurate records of income, deductions, receipts, and business expenses. Documentation is your best defense.
2. Make Estimated Payments
   Self-employed or business owner? Stay on top of quarterly tax obligations to avoid underpayment penalties.
3. Review Withholdings
   Adjust your paycheck withholding or retirement contributions regularly to avoid a year-end surprise.
4. Work With a Professional
   A tax strategist can identify liabilities early, help you avoid audit triggers, and represent you if an audit does occur.

✅ The Bottom Line

Tax liabilities and audits don’t have to catch you off guard. With careful planning, proactive monitoring, and the right guidance, you can minimize your risk, stay compliant, and keep more of your hard-earned money.

The earlier you take control, the more prepared—and protected—you’ll be.

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure:
This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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