Ronald J. Cappuccio, J.D., LL.M. (Tax)

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Sole Proprietors 10 times More Likely to be Audited

| Feb 27, 2006 | Uncategorized

Sole Proprietors 10 times More Likely to be Audited

Sole proprietors, independent contractors, self-employed workers and others accounted for $68 billion in missing taxes, the IRS said, the Associated Press reported. “That is a very significant noncompliance rate,” an IRS spokesman told reporters. “We do not have specific conclusions as to how much of this is willful or confusion.”

Sole proprietors are at least 10 times more likely to be audited this year than other business entities, dailybreeze.com says. Last year, with more enforcement personnel available, the IRS audited almost twice as many individuals as five years previously.

Alternative business entities, such as LLCs and Corporations might be considered.

see: http://www.TaxEsq.com

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