Boots & Sabers

The blogging will continue until morale improves...

Owen

Everything but tech support.
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1023, 29 Dec 20

IRS Plans 50% Increase in Small Business Audits Next Year

Welcome to Biden’s America. Right after liberal states and municipalities hammered small businesses with lockdowns and restrictions, the IRS is going to audit the hell out of them.

The Internal Revenue Service is planning to ramp up audits of smaller businesses and their investors by about 50% next year, following years of persistently low examination rates, an agency official said Tuesday.

 

The result could be a surge in audits of companies ranging from mom-and-pop retail stores and technology startups to investment funds that have historically faced only infrequent checks thanks to the time and effort required at the IRS.

 

“The IRS is focusing our efforts to increase compliance activity in this area of not only partnerships, but also investor returns related to pass-throughs,” De Lon Harris, the IRS deputy commissioner of examination for small businesses, said at an American Institute of Certified Public Accountants event. For 2021 “we are planning for 50% more than we had in the previous year.”

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1023, 29 December 2020

5 Comments

  1. Kevin Scheunemann

    Liberals HATE small business. This is the problem with voting for Biden…he declares total and utter war on job creators. Reprehensible. disgusting.

  2. jonnyv

    You call this “Joe Biden’s” America. But, this decision is happening under the Trump administration. And as they said in the statement, “following years of persistently low examination rates.”

    I appreciate good spin as much as the next, so nice try.

    I am a small business owner, and I am very confident that my required tax burdens are fulfilled. I would hope that others are as well.

  3. Owen

    Fair point, but they don’t move on this without a nod from the incoming administration.

  4. Kevin Scheunemann

    Jonnyv,

    You are a naive fool.

    I comply with all tax law and suffered a”gotcha” tax audit under Jim Doyle by WI DOR.

    Main issue in audit was: sales tax on take home dilly bars. We had in writing from DOR…not taxable.

    Auditor said were taxable. I pulled out my actual guidence on subject, which caused auditor to pause in her smugness. She had to go back to her boss. They confab for a week and hand me a $24k bill and say the DOR made an error on their guidence I followed.

    I was mad. I said, “your agency made an error, I’ll correct going forward, but you should overlook past issues since I honestly relied on your agency error in advice.”

    Answer: “we (DOR) cannot take responsibility for erroneous advice we give out!”

    I was furious.

    I said, “Fine, I’ll sales tax every product going forward, just to be safe.” Auditor says, ” Oh no, you cannot tax products that may be non-taxable.” I said, “How is that possible, if you refuse to tell me truthful information?”

    She shrugged her shoulders and said, ” you have to get a legal letter ruling”. I said, ” those are a $1000 a piece minimum and we have thousands of menu combinations, how do I afford that?” Silence.

    3 years, 10k in legal and accounting time later, I won and received a 4k refund from audit.

    I won, but I lost. It consumed me for 3 years because I was not just fighting for me, but for every fellow franchisee I exposed as relying on same advice.

    Audits are not this innocent process you allude to. They are disgusting, awful, life destroying processes for honest taxpayers. That is the height of gross, liberal evil. This is why I war on gross liberal ideology with a passion. Liberals in subsequent state legislative hearings, where I openly exposed this DOR behavior, failed to defend me on any level, they sided with the gross evil audit process! Liberals legislatots support evil.

    You should oppose gross evil and not court evil thinking you are firm against the evil. I made that mistake…this naive idea that tax agencies are honest. They are not. They are thieving, disgusting, gotcha, liberal mobs that thrive on attacking the innocent.

  5. Tuerqas

    “You call this “Joe Biden’s” America. But, this decision is happening under the Trump administration.”

    I would disagree with that Jonnyv. Trump has nothing to do with it. If anything, I would say it was a big FU to Trump by the IRS on his way out. The administration in power during audits is the admin with the power to rein them in. Who do you think was responsible for the persistently low examination rates?

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