An expert agrees on this. According to this expert the IRS is now focusing more on small businesses. In fact, this is something that the very same small business owners can confirm, because in comparison to previous years, these “surprise” tax audits to small businesses have increased quite a lot in number.
According to the expert and professor Donald T. Williamson, confirms that these audits are now mainly targeting small business owners, which is quite unfair. Small businesses have enough problems nowadays, and now they have to stand the restless and hard attack of the IRS.
Small businesses in North America have very serious problems, and now that the IRS is targeting them we can say that it’s just a disaster waiting to happen. From some time small business owners have been doubtful on expanding their business, and now that they know the IRS is running behind them, we can say with confidence that they will be even more doubtful than ever before.
From here we can see that this plan by the IRS is only going to affect economy in a bad way. But it will be hard to see the effect right now, we have to wait some time.
A Reduced Budget:
According to many experts, this situation has been brought as a result of the reduction in budget for the IRS. That’s why they are now focusing on auditing small businesses, as they require less money.
It seems unfair, but it may be one of the reasons on why IRS auditors are now encouraged and pressured to audit more small businesses than ever before.
That’s why some other experts agree that the random algorithm of the IRS is not so random after all, because nowadays it’s very easy to see that this institution has a special fixation on small businesses.
One of the explanations on why the IRS is targeting more small businesses can be also be justified on the following premise: small businesses receive most of their income in the form of cash. As we all know, cash is harder to track down and therefore more audits would be needed in order to ensure small businesses are paying their correct tax share.
In fact it’s true, but it’s not a valid reason to target small businesses in such a hard and restless manner. According to many experts this is going to install even more fear and doubts, and these are things that we don’t need right now, especially when our economy is in problems.
It’s Time To End It:
As we have seen before, China’s overproduction and unfair practices in foreign markets – including the US – is enough problem for small business owners in America. That’s why it’s important for the IRS to stop its war on small businesses, because it’s only going to cause problems.
We hope the IRS can notice this problem that’s cooking before it’s too late. It’s just a time bomb waiting to explode.