IRS casts wider net for small business audits — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

IRS casts wider net for small business audits

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in Hiring,Human Resources,Leaders & Managers,Management Training,Office Management,Records Retention

Good news for large corporations means bad news for small business owners: Instead of going after the big fish, the IRS is spending more resources on the small fry.

Alert: A new study by the Transactional Records Access Clearinghouse (TRAC) provides some sobering insights. TRAC is a nonpartisan research group affiliated with Syracuse University.

The TRAC study shows that the IRS reduced the number of hours agents spent auditing corporations with assets of $250 million or more by one-third since 2005 and increased the number of hours spent on audits of companies with assets of less than $10 million by 30%.

This trend in IRS priorities will not yield greater revenue gains. Data show that audits of larger corporations produce significantly higher returns per audit hour—$9,354 for audits of large corporations compared with $1,025 for small to midsize companies. Revenue per audit hour for large companies increased from $6,594 in ...(register to read more)

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