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IRS Audits Focused on Small Businesses with Questionable Tactics

According to recently released information, the news source noted a significant increase in IRS audits focused on small businesses targeting $200,000 to $400,000 income rages.  The IRS has been accused of some very questionable tactics as they attempt to gather information to show that small businesses are under-reporting income, especially income received in cash.  Many observers believe the additional pressure applied by the IRS on small business people is to compensate for tightened budgets and a reduction in available auditors.  The IRS has been accused of employing questionable tactics in order to intimidate small business owners including contacting their banks, customers, vendors and even their neighbors to gather information on an IRS audit target.

If you are a small business person who has been contacted by the IRS for an audit the first action you should take is to contact the IRS tax lawyers at Allen Barron for a complimentary guide “What to Expect from an IRS Audit” and a free consultation at 866-631-3470.  One of the most important things you need to know is that it is not in a US taxpayer’s interest to contact the IRS directly.  The IRS has already established a target revenue for your case, and are looking for every opportunity to expand that amount.  IRS revenue officers (often referred to as auditors) are highly trained and skilled interrogators.  They are much more likely to ask a taxpayer for information that is not covered under the scope of an audit in an attempt to expand the scope and revenues of the audit itself.

Allen Barron’s experienced IRS attorneys handle all communications with the IRS on your behalf.  We are quite familiar with these agents as we work with them on a regular basis.  We work to quickly understand the IRS’ strategy for the audit and ensure that all appropriately requested information is provided in a timely manner.  We advise clients on the specific information to be provided, all under the protection of the attorney-client privilege.  Don’t be intimidated by IRS audits focused on small businesses and their owners in an attempt to raise revenues.  We work to protect your interests, limit the scope of the audit and to minimize or eliminate your financial exposure.