Inc.com reports on the IRS' crack down on small businesses this tax season. The IRS increased S Corporation audits by 34% and partnership audits by 15% in 2006 as part of a multi-faceted effort to close the federal tax gap.
The article also reports that in contrast, 2006 audits of larger corporations, those with $10 million in assets, dropped by 2.2% from a year earlier.
Just what small businesses need, the stress of being audited. Even if you do everything by the book, and keep very good books, it's still time consuming, not to mention very nerve racking! Has anyone been audited? What was your experience?
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