top of page

IRS Targets Small Businesses for Scrutiny

Writer: OurStudioOurStudio

The Internal Revenue Service has sent out letters to 20,000 small businesses since fall 2012, notifying them of "possible income under-reporting."

The IRS says it is trying to identify businesses that get "an unusually high portion" of their reported sales through credit card transactions. The thinking is that a lot of cash transactions might be going unreported.

To decide who gets letters, the IRS compares a business's credit card and cash receipts with industry averages.

Comments


NEWSLETTERS

Get Reason In Your Inbox.

Thanks for submitting!

Join the

LIBERTARIAN PARTY

We are funded entirely by Americans who want to help give liberty a voice. By joining the Libertarian Party as a dues-paying member, you are investing in this critical work.

Thanks for submitting!

ADDRESS

1444 Duke St.

Alexandria, VA 22314-3403

PHONE

(800) ELECT-US

(800) 353-2887

EMAIL

bottom of page