IRS: Watch out, small fry

From WebCPA:

“IRS to Step Up Audits of Sole Proprietors”

“IRS Reduces Audits of Large Corporations”

As bad as it sounds, this could be the natural progression of a long term enforcement effort, though we’re only speculating on that possibility. It’s also valid for the IRS to enforce existing tax laws regardless of the size of a business. The core problem, as described by a subject in one of the articles, is that the tax code’s complexity imposes a heavier relative burden on smaller businesses, and (we would add) real opportunity costs on society. That’s especially true when innocent firms are subjected to an intensive audit.