Big business gets a pass.
Among corporations reporting assets of $250 million or more, the IRS since 2005 has cut back by a third the hours it spends examining their books. IRS has also sharply reduced the number of large corporate returns it examines — down 22 percent since 2005, according to the analysis of agency data by the Transactional Records Access Clearinghouse at Syracuse University.
This despite the fact that IRS auditors uncover the largest dollar amounts of tax under-reporting in the books of these large corporations and Congress has actually provided IRS with more revenue agents trained to handle complex returns such as these, according to the non-profit, non-partisan watchdog group.
Who’s making up for the difference? Answer: Small business audit hours are up 30%.
More at http://trac.syr.edu
One Response to “Warn Your Clients: IRS Targets Small Biz for More Audits”
Tax Lawyer
This trend should continue in the near future. The focus is now on small business and Schedule Cs. They will continue to rise, so that mom and pop small business owners will get in line. At least that’s the IRS theory.