How the IRS Targets Small Businesses
The IRS has set its sights on small businesses across America. Tighter enforcement, expanded data analytics, and renewed focus on tax compliance mean more business owners are getting unexpected notices, correspondence audits, or on-site visits. It’s no longer a matter of “if” it’s “when.” If you’ve received a letter or just want to protect your business before the IRS shows up, reach out today. Call (678) 717-9818 or email [email protected].
The IRS’s New Focus: Small Business Compliance
The IRS is using sophisticated data matching tools to identify discrepancies in payroll filings, expense deductions, and 1099 reporting. Industries with heavy cash flow, independent contractors, or frequent write-offs are being watched closely. This includes service trades, restaurants, trucking, real estate, and e-commerce sellers.
When the system flags a potential inconsistency like a Schedule C that doesn’t align with income reports or payroll deposits that don’t match the 941 filings, the IRS doesn’t always launch a full audit. Instead, it often begins with a compliance check, which can quickly escalate if not handled correctly.
What an IRS Compliance Check Looks Like
A compliance check may seem routine, but it’s a serious review of your records. The IRS examiner will often request bank statements, invoices, contractor payments, and payroll filings. Their goal is to verify that all required returns have been filed correctly and that your business income and expenses are properly accounted for.
Some common triggers include:
Income mismatches from Forms 1099-NEC or 1099-K
Excessive deductions for meals, mileage, or home office expenses
Late or missing payroll tax deposits
High expense-to-revenue ratios compared to industry averages
These small details can lead to significant penalties, trust fund recovery assessments, or even criminal referrals when left unaddressed.
How Steve Perry Protects Business Owners
Steve Perry, EA, founder of Books, Taxes & More, has helped hundreds of small business owners navigate IRS inquiries before they spiral out of control. As an IRS Enrolled Agent, he knows exactly how compliance officers think and what documentation will secure a favorable outcome.
Steve doesn’t just respond to IRS letters, he builds a protection plan. That includes establishing sound bookkeeping systems, correcting past errors, and creating evidence-backed positions that can withstand deep scrutiny. His approach gives business owners peace of mind that they can survive and even thrive under IRS pressure.
Feeling the weight of a compliance notice? Don’t wait until deadlines pass. Call (678) 717-9818 or message Steve directly on LinkedIn www.linkedin.com/in/steveperrybtm.
The Hidden Cost of Ignoring a Compliance Letter
Ignoring an IRS compliance check can be far more costly than simply responding. If the IRS deems your responses inadequate or you fail to reply altogether, the issue can escalate to a full examination. This can lead to back taxes, penalties, and years of interest.
Many small business owners unintentionally sabotage themselves by answering questions directly without representation. A single misstatement can lead to new investigation layers, expanded audit scope, or personal liability for payroll taxes.
That’s why working with a licensed tax professional like Steve Perry EA is critical, not optional.
Why the IRS Believes Small Businesses Are Vulnerable
The IRS often sees small business operations as loosely structured compared to corporations. Lack of formal accounting systems, irregular cash management, and inconsistent recordkeeping make easy targets. The Service knows most entrepreneurs are busy running their businesses, not defending them.
By combining advanced fraud detection algorithms and regional field audits, the IRS can pinpoint deviations from expected norms in your industry. Once flagged, your business enters an internal risk category. Staying off that radar requires proactive defense, clean documentation, and expert representation.
Secure Your Business Before the IRS Does
Every compliance letter or soft audit is a signal. It’s the IRS testing your defenses and your records. Whether you’ve already received a notice or just sense the risk rising, now is the time to act.
Contact Steve Perry EA today before the IRS decides for you.
Email [email protected]
Call (678) 717-9818
Message Steve directly on LinkedIn www.linkedin.com/in/steveperrybtm
When your business reputation and livelihood are on the line, having a trusted expert like Steve Perry isn’t just valuable, it’s essential.
