The Inflation Reduction Act is approved and with that, nearly $80 billion in IRS funding, with $45.6 billion for “enforcement,” raising questions about who may be targeted by future audits. What are your thoughts?
- IRS Commissioner Charles Rettig said the resources won’t increase “audit scrutiny on small businesses or middle-income Americans.” and “given the scope of the bill, keep in mind these changes will not be immediate. It’s a 10-year plan, and it will take time to put these provisions into place. More details will be available in coming months.”
- However, with the investment projected to bring in $203.7 billion in revenue, opponents say IRS enforcement may affect everyday Americans.
So it is a wait and see for business owners also. My guess is that audits will increase across all taxpayers.
As always though, no need to panic. For us as tax advisors and for you as taxpayers, it is business as usual. What I mean by that is, focus on growing your business, focus on being profitable, focus on keeping good records and you need not fear the IRS. Those who choose to be aggressive in their taxes will continue to do so and those who prefer to be more conservative will continue to do so. I truely don’t see our day to day tax choices changing.
Where I do see some changes is that we as advisors will continue to psuh clients to keep good records, to not be greedy with their tax deductions and rather be “reasonable” in their approach.
For additional resources, go to our website AND remember, THOMAS launches September 15th. You don’t want to miss this 5 step approach to finding more legitimate tax deductions in your business.