Over the next 12 months, the Small Business and Self Employed Division (SB/SE) of the Internal Revenue Service will focus on increased enforcement, says Faris Fink, Commissioner of the SB/SE division.

The Small Business is responsible for the majority of the tax gap, Fink told a session of the American Institute of Certified Public Accountants National Tax Conference. Fink said "Enforcement has a necessary presence when you are talking about tax administration".

But the enforcement will recognize (a) there are taxpayers who can not properly do their taxes, (b) taxpayers who will not properly do their taxes and (c) some who truly need assistance with compliance. All, of which, must be coupled and balanced with education and taxpayer services.

How such recognition will occur is unclear. But, the Commissioner said some of the areas the Division will be examining include

S-corporation;
LLC's;
High-income filers, and;
Abusive transactions.

S corporations are likely to receive particular scrutiny but further review would not be limited to S corporations but to all passthrough entities like partnerships, which can expect to receive a "significant amount of attention" because SB/SE has found this to be an area of abuse and would like to curb what he called a growing trend of abusive transactions. The Commissioner said there would be a renewed effort to address high-income filers, typically classified as those whth an adjusted gross income of over $200,000.

GIVE OUR OFFICE A CALL

With the complexity of the tax law, understanding what tax planning provisions to use in your business planning strategy can be a daunting task. While this letter hopefully gives you a heads up on several audit techniques that are coming, you might like to know how to avodi the audits. For a more detailed plans that can be customized to your particular circumstances, give us a call at 702-642-8953 or write me at isueirs@aol.com.

Remember, we save you taxes and keep you invisible to the IRS. We guarantee our work. No Exceptions. No Time limit. No IRS.