The IRS keeps hiring “Revenue Agents” (the IRS term for Auditor). In the last few years, there has been a massive increase of auditors for Large Businesses (the is is called the LB&I – Large Business and International group). Now the IRS is going after Small Businesses. The Small and Mid-Sized Business section (“SMSB”) is growing rapidly.
More auditors means not only increases in the numbers of audits, it is resulting in more intense and longer audits. Revenue Agents now want to see practically every document – not just bank statements and a sample of bills. They are locating at every invoice, calendars, credit card statements and anything to show an under-reporting of gross income.
Revenue Agents are also attacking independent contractors, especially if they are not given 1099’s.
For more information see Tax Audits and Collections.
see: http://www.TaxEsq.com