Small Businesses and Sole Proprietors May Be at Higher Risk for an IRS Tax Audit

Posted on in IRS Issues

Illinios tax attorney, Illinois IRS lawyerOver the last five years, budget cuts have reportedly led to massive staff shortages within the Internal Revenue Service. As a result, the frequency and rate of tax audits has decreased, and efforts to collect delinquent taxes through liens and levies has slowed. Essentially, many taxpayers, businesses, and sole proprietors may have slipped through the cracks. But evasiveness may soon be a thing of the past – at least for most - thanks to the addition of 700 new IRS agents.

First “Hiring Spree” in Years Will Fill IRS Enforcement Gaps

The upcoming addition of hundreds of new enforcement agents might not put the IRS back at full capacity, but this hiring spree – the agency’s first in more than five years – is expected to fill current gaps in their enforcement workforce. As such, the agency will be able to better pursue those who are suspected of tax fraud and tax evasion. But they are not the only ones that the IRS will pursue. In fact, everyone from individuals to large businesses and corporations could soon cross paths with the “new and improved” IRS task force.

Small Businesses and Sole Proprietors Likely to Get Hit First

Although the agency will eventually fill slots within all departments, including those in higher-level enforcement, they plan to focus on the department that oversees self-employed taxpayers and small businesses first. This places small businesses and sole proprietors at the top of the list when it comes to possible audits and pursuit for unpaid taxes. So, if this applies to you, it might be time to get your paperwork in order, just in case. 

Being Audited or Behind on Your Federal Taxes? Our Attorneys Can Help

If owe back taxes to the IRS or fear that you may be at risk for an audit, procrastination and mismanagement of the situation will only lead to more severe consequences. Even worse, avoidance of the issues could put your business at risk. Take action now and resolve your IRS issues instead. 

The Law Offices of Eric Zelazny have been serving the Cook County area since 1996 and can help you navigate the process. Depending on your circumstances, we may even be able to negotiate a favorable settlement for your IRS debt. Put your IRS issues behind you. Call 708-888-2299 and schedule your free initial consultation with a skilled Tinley Park tax attorney today.




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Tinley Park, Illinois 60477