According to the National Association of Tax Professionals, IRS auditors are now being instructed to obtain a copy of the taxpayer’s QB file for audits for any taxpayer that uses QuickBooks. If the taxpayer refuses to provide the database and the auditor deems it necessary, they can issue a Summons for the file!
There is definitely a trend that’s a direct result of so many small businesses using QuickBooks.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
Jennifer Hofmann says
Yep. The IRS is cracking down on small business to get blood from the proverbial stone. While it’s true that small business owners make the greatest number of errors when filing, and small business has always been audited more frequently than large companies, there is a sea-change happening at the IRS. Prepare to be audited — and keep your books accordingly.
Deb Greenleaf says
The irony, Jen, is that the IRS has openly admitted that it’s easier to audit small businesses than the big corporations! Who knows how much the next Enron might be hiding, they’re thinking, let’s go after Joe’s hardware shop and milk him for every dime!!
20 20 tax resolution tips says
How come IRS audit small business establishments more frequently? How does this affect them?
wage garnishment IRS says
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