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IRS Shifts Audit Focus To Small & Home Business

January 21, 2007 by Chuck | 0 Comments

When you can’t pick on the big guys because they can hire expensive lawyers, pick on the little guys because they’ll knuckle under to your intimidation and can’t hire $300 per hour tax attorneys to fight off the predators.

Supposedly by attacking small businesses and home businesses, they’ll get more tax revenue…that’s like going big game hunting in a field of Shetland Ponies. What they’re really after is the equivalent of shooting fish in a barrell they hope.

This home business was told they owed $100,000. When it got near court time, the IRS offered to settle for $5,000.

Why did this home business get targeted?

1) They claimed a home business deduction

2) They used a tax preparer the IRS hated because they were so aggressive and in the IRS’ view illegal. Whoever named them on the tax forms as their preparer got audited.

And this is after the Republicans were running things for years. Will the Blue Dog Democrats protect the “little guys” and “gals”?

Watch your tax preparer and that home office deduction - even though it may really be legitimate. As these victims said “We thought good record keeping would be enough.”

From the Tennessean

If you ever get in this mess, I hear Dan Pilla offers some really good resources. Before the title changed because we don’t actually lick stamps anymore, he used to offer a book called “How you can lick the IRS with a stamp!”

In Government, WAH News, Working At Home

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