Warning to business owners: Danger ahead. The IRS has announced it’s stepping up audit efforts with a renewed emphasis on examining returns of small business entities. Watch out for these five danger signs that could lead to IRS inquiries:
1. Target industries: What’s your line?
The IRS periodically releases “audit-technique guides” to help its examiners conduct audits. For example, in addition to the dozens of audit-technique guides already on the books, it has issued publications for the construction industry, auto dealerships and veterinarians.
It’s no accident that the IRS singles out particular industries and professions. The agency considers those businesses ripe for abuse.
Alert: If you’re in a targeted field, your business faces a greater audit risk.
On the plus side, an audit-technique guide can provide valuable insights into the violations the IRS expects to uncover. Treat an audit-technique guide ...(register to read more)
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