8/18/22
Topic: Will the Inflation Reduction Act Prompt More IRS Audits?
Guest: Brian Post, CPA, managing member, PCO Bookkeepers
Note: President Biden signed the Inflation Reduction Act of 2022 into law on Aug. 16. At recording time, it was not yet official.
In this episode we discuss:
The Inflation Reduction Act's provision that appropriates nearly $80 billion to the IRS for enforcement and taxpayer services
How much IRS wait times have increased recently and how in 2021 the IRS answered only 9 percent of calls
Brian's take on the likelihood of more audits and what that means for pest management business owners
How disruptive and expensive it can be to go through a tax audit
What happens when you get audited
Which items auditors will look at most closely
Why it's important to properly document meals, travel and entertainment and separate business and personal expenses
How having internal controls can instill confidence in your auditor
The risk of having outside contractors and why it may put you under a microscope
The aggressive use of tax credits and other circumstances that could increase your chance of being audited
Resources mentioned:
Dan's PMP magazine article: 6 red flags for IRS audits
PCO Bookkeepers article: What to Do if Your Company Is Selected for a Sales & Use Tax Audit
Dan's PMP magazine article: Is the ERC an IRS audit waiting to happen?
"There is going to be more of a requirement to have clean books and proper documentation in place so in the event that you unfortunately get one of those notices or audits that you're prepared for it." —Brian Post
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