Tag: small business tax
Thousands of small-business owners have received letters from the Internal Revenue Service questioning whether they are underreporting their business income, a harbinger of a broader initiative aimed at boosting federal tax receipts and ensuring compliance.
The program is the latest move in the agency’s effort to combat what it sees as a widespread problem: failure by businesses, including mom-and-pops, to report all cash sales in order to minimize tax bills.
Tax officials say the letters don’t constitute an audit and instead are simply a request for more information. Some business owners and some lawmakers, however, call the new IRS program alarming.
“There’s an emotional thing when you get a pretty ominous-looking letter from the IRS, [saying] you might have done some bad things,” said Tom Reese, owner of Hearing Well Inc., which operates a small chain of stores that fit and sell hearing
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