AICPA Tax Expert Provides Tips for Surviving a Small Business Tax Audit to CNBC 

Published March 07, 2014

CNBC’s Kelli B. Grant reports March 7 in “5 strategies to beat a small-business tax audit” about the Internal Revenue Service’s shift in audit focus from corporations to small business entities such as partnerships, S corporations and sole proprietorships.  Even so, Grant says, the risk of being audited is low.  Melanie Lauridsen, tax technical manager for the American Institute of CPAs, is quoted. “The percentage is very, very, very small.”  Lauridsen noted in the article that the “IRS is both underfunded and short-staffed, which has resulted in falling audit rates in recent years.” Grant writes, “In 2013, S corporations and partnerships both had audit rates of 0.42 percent, down from 0.5 percent in 2012.  Corporations with assets of less than $10 million had an audit rate of 0.95 percent, down from 1.1 percent a year earlier, while individuals filing a Schedule C or E saw audit rates ranging from 1.2 percent to 3.6 percent.”


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