Episode 93

8/18/22

Topic: Will the Inflation Reduction Act Prompt More IRS Audits?

Guest: Brian Post, CPA, managing member, PCO Bookkeepers

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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:

"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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