Personal Liberty Digest™ will be upgraded this weekend to reflect a dynamic new look and mobile-friendly viewing to enhance your experience! Plus, we'll be providing even more of the compelling content you've come to expect, delivered in a whole new way!

  Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty

IRS Likely To Target Small Businesses In Key Regions For Audits

April 16, 2013 by  

IRS Likely To Target Small Businesses In Key Regions For Audits

With a continuously growing mountain of regulatory red tape, forthcoming Obamacare restrictions and a number of other bureaucratic encumbrances to deal with in addition to living and breathing the work they do, America’s small-business owners have it hard. Unfortunately, the Internal Revenue Service could make it harder than ever this year to run a small business.

Findings from a study conducted by the National Taxpayer Advocate, an internal IRS office, suggest that the tax collection agency has determined small businesses to be the most likely tax scammers, raising the propensity that they will be most heavily targeted for audits.

The IRS says that it does not base audits on factors like geographic region or employment type, but chooses audit victims according to how they score on its Discriminant Inventory Function (DIF).

“If your return is selected because of a high score under the DIF system, the potential is high that an examination of your return will result in a change to your income tax liability,” states an IRS publication.

But the National Taxpayer Advocate information shows a pretty clear relationship between the 1 percent of people the IRS audits each year: They often get paid in cash, they own small businesses and they live in wealthy parts of the Nation.

Reportedly, sole proprietors in New Carrollton, Md.; College Park, Ga.; Beverly Hills, Calif.; and Newport Beach, Calif., are in particular danger of receiving an audit this year. Those regions harbored the highest number of tax cheats in 2009, according to the study.

Americans throughout the Nation who own construction companies or real estate rental firms are also likely to come under increased IRS scrutiny.

Sam Rolley

Staff writer Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After learning about many of the biases present in most modern newsrooms, Rolley became determined to find a position in journalism that would allow him to combat the unsavory image that the news industry has gained. He is dedicated to seeking the truth and exposing the lies disseminated by the mainstream media at the behest of their corporate masters, special interest groups and information gatekeepers.

Facebook Conversations

Join the Discussion:
View Comments to “IRS Likely To Target Small Businesses In Key Regions For Audits”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at

  • Peter Barney

    And most smart people wonder why small businesses won’t hire for jobs!

  • Guest

    Small business owners are already getting hammered with taxes and regulations! I wonder why the economy is so stagnant no I don’t it’s obvious. I definitely won’t be hiring anyone this year.


Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.