One of the biggest fears of most business owners is being informed by the Internal Revenue Service that their income tax returns will be audited. These fears were compounded by the recent Congressional hearings detailing taxpayer abuses by the IRS.
From confidential information I’ve gathered, it appears that the IRS is stepping up its audits of business returns, particularly “S” corporations like Blau Plumbing, Inc. “S” corporations are more of a target than in the past simply because they had not been targeted as often as “C” corporations.