The IRS Audited Fewer Small Businesses Over the Past Year
The small business audit rate decreased in 2013, according to new documentation released by the Internal Revenue Service (IRS). The decline -- "from 0.71% in 2012 to 0.61% in 2013," according to Small Business Trends -- is not necessarily cause for celebration.
When compared with small business audit rates over time, the current percentage is alarmingly high -- or 0.61% compared to 0.36% in 2004. The small decrease over the past year, moreover, is unlikely to repeat itself. "Given the tax agency's belief that small business owners are responsible for a sizeable portion of the tax gap –- the difference between taxes owed and taxes paid -– the IRS seems unlikely to cut the small business audit rate considerably this year," Small Business Trends explains.
USA Today confirms the IRS is, if...